In a decisive move aimed at safeguarding elderly residents, Louisiana has enacted a new law that introduces stringent protections for users of Bitcoin ATMs. This legislative response comes in light of alarming incidents where seniors were duped into withdrawing large sums of cash and converting them into cryptocurrency under false pretenses, believing they were addressing urgent legal issues.
The law mandates that Bitcoin ATMs display warnings informing users that official entities will never demand cryptocurrency payments. These machines will now show precautionary alerts during transactions, particularly when users engage with QR codes or input wallet addresses, clearly indicating the potential for scams.
Recent reports from law enforcement detail how scammers employed scripted phone calls impersonating government or banking officials. Victims were manipulated into believing their accounts were compromised, often threatened with arrest if they didn’t pay their supposed debts in cryptocurrency.
Daily Limits and Transaction Delays in Effect
A crucial aspect of the new regulation includes a daily limit of $3,000 on Bitcoin ATM deposits, coupled with a mandatory 72-hour waiting period before any transaction system is finalized. This time frame provides an opportunity for potential victims to reassess the situation, seek verification, or notify authorities.
In a particularly distressing example, a victim was informed of legal charges linked to alleged child pornography and was coerced into withdrawing $31,000, which she deposited into a Bitcoin ATM under the guise of instructions from a scammer posing as a fraud agent. Similar tactics led several others to unwittingly transfer thousands of dollars in Bitcoin or USDT.
Authorities have noted that the implementation of this waiting period has been instrumental in mitigating further losses, allowing investigators to identify fraudulent trends that spanned multiple states.
Over $200,000 Recovered from Cryptocurrency Scams
According to a recent announcement from the U.S. Department of Justice, over 1.9 BTC and 60,139 USDT have been forfeited following the approval of a federal judge. These funds were seized from a wallet connected to a foreign national residing in the Seychelles, associated with scams targeting at least four victims—two in Louisiana, one in Texas, and one in Minnesota—all aged over 70.
The victims, tragically unaware that they were sending money to fraudsters, withdrew funds and converted them via ATMs. Efforts are now underway to return the forfeited assets to the affected individuals through federal recovery programs. The investigation was a collaborative effort involving the U.S. Secret Service Cyber Fraud Task Force and various sheriff’s departments.
Wider Initiatives to Protect Seniors from Financial Exploitation
Alfred Mason, President of AARP Louisiana, emphasized that falling prey to scams should not be seen as a personal failing. He recounted a case where a woman ignored her daughter’s warnings, ultimately leading to her losses due to a deposit made at a Bitcoin ATM.
The AARP has set up a national fraud helpline at 877-908-3360, enabling seniors and their families to report possible scams. Meanwhile, the Justice Department continues its Elder Justice Initiative, providing resources and training to equip local law enforcement and prosecutors in combating financial crimes against older adults.
As authorities comb through cases related to cryptocurrency fraud, further investigations are anticipated, focusing on recovering assets connected to similar fraudulent activities targeting vulnerable populations.
