City Council’s Rules Committee passed my state-leading consumer protection ordinance to address rising scams at Cryptocurrency ATMs. Nationwide, scams using cryptocurrency ATMs cost victims nearly $400 million a year.
Earlier this year, the Senior Affairs Advisory Board contacted my office, identifying a new generation of scams that rely on Cryptocurrency ATMs. Currently, San Diegans can convert their cash to cryptocurrency at more than 110 cryptocurrency ATMs across the City. Once the converted cash is sent, unlike traditional ATMs that record financial transactions, it is gone, almost impossible to trace, and nearly irrecoverable.
This ordinance will require warnings at every cryptocurrency ATM, better equipping businesses to intervene in the event of a scam, helping residents assess risk before succumbing to a scam, and guiding individuals to educational resources.
As scams evolve, our City will evolve to meet and address them, and partner with law enforcement and advocacy organizations to do our part to protect residents.