SC bill targets crypto scammers

South Carolina legislators are considering a bill to protect older residents from a growing cryptocurrency scam costing Americans across the country hundreds of millions of dollars a year.

Fraudulent activity targeting older South Carolinians is on the rise and more criminals are using cryptocurrency kiosks to carry out their scams. Crypto kiosks can be found in supermarkets, convenience stores, gas stations, bars, and restaurants. 

There are more than 600 crypto kiosks in South Carolina today. Because crypto kiosks in South Carolina lack sufficient fraud protections compared to traditional financial institutions, like banks and other money service businesses, criminals are using crypto kiosks to steal hundreds of millions of dollars from Americans each year.

A November 2025 survey by national organization AARP conducted with registered voters in South Carolina found South Carolinians lost nearly $38.6 million to cryptocurrency scams in 2024; people 40-plus account for about three-quarters of South Carolina’s crypto victims and more than 90% of the reported dollars lost. The average South Carolina cryptocurrency scam victim lost more than $26,000 in 2024.

AARP, a nonprofit, nonpartisan group that empowers people to choose how they live as they age, supports the passage of House Bill H.4592. The organization points out the legislation will better protect South Carolinians from crypto kiosk fraud by:

• Requiring money transmitter licensing of cryptocurrency kiosk operators in the state.

• Requiring cryptocurrency operators to refund transaction fees for transactions related to fraud.

• Clearly displaying the fees and exchange rate charged.

• Implementing daily transaction limits to limit the appeal of these machines to criminals.

• Posting fraud warning notices and clarifying steps people should take if they suspect fraudulent activity.

• Printing receipts with relevant transactional information, which allow law enforcement to investigate immediately.

How Scams Involving Crypto Kiosks Work

Criminals – often impersonating government officials or businesses – convince individuals that they must address an urgent financial matter, directing them to withdraw large amounts of cash and put that money into a crypto kiosk. It is then transferred to a digital wallet controlled by the criminal.

For more information on the dangers of crypto scams, read the articles on the AARP website.