Opinion: Alaska needs to curb crypto-kiosk scams

Imagine receiving a call from a law enforcement agency, state or federal court or some other “official” government entity saying you have an outstanding fine, fee or warrant. Pay it immediately or you’re going to jail. The phone number matches that of the identified agency, thanks to AI, and you’re directed to a nearby “Bitcoin ATM” to send cash.

This isn’t hypothetical. This happens to dozens of Alaskans every day. In 2024, Alaskans lost more than $26 million to online fraud, with seniors bearing a third of those losses. These cryptocurrency kiosks have become a preferred tool for criminals because they offer instant, irreversible and often anonymous transactions.

Unlike traditional banks, these kiosks currently operate in a regulatory “black hole.” Scammers exploit this by using high-pressure tactics to force victims into making untraceable transfers. To protect our most vulnerable residents, I introduced Senate Bill 249. This legislation creates a necessary shield for Alaskans by requiring:

• Clear warnings: Operators must post conspicuous notices warning users about common scams.

• Identity verification: Requiring a government-issued ID creates a vital “speed bump” to break the spell of a high-pressure scam.

• Blocking fraud: Operators must use analytics to block transactions to known illicit or overseas criminal wallets.

• Fee and transaction limits: There are limits on fees for using the machines, but more importantly there are daily and monthly transaction limits to minimize the financial damage from these scams.

Our seniors spent decades building their life savings. They deserve the same financial “guardrails” in the digital age that we expect in every other sector. SB 249 doesn’t ban technology; it simply brings it out of the shadows. It is time to provide our seniors with the protection they’ve earned and stop digital predators from draining Alaskan bank accounts.

Sen. Cathy Tilton represents Senate District M in the Alaska State Senate. Senate District M is composed of House districts 25 and 26 in the Mat-Su. Sen. Tilton is a former speaker of the Alaska House.

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