San Diego has become the first city in California to address a new type of financial scam where criminals manipulate victims—particularly senior citizens—into sending money via ATMs that convert cash to cryptocurrency.
On Tuesday, the City Council unanimously passed a new ordinance requiring cautionary signs at the over 100 cryptocurrency ATMs now operational in San Diego.
Similar warning signage implemented by Omaha, Nebraska, reportedly reduced ATM cryptocurrency scams by 80% within a single year, according to the American Association of Retired Persons.
“Preventing scams before they occur is crucial and can mean the difference between facing life-altering repercussions or being able to fulfill basic needs,” stated Council President Joe LaCava, who championed the new legislation.
The forthcoming law, effective January 1, will require signage stating, “Warning: Cryptocurrency May Be Used for Scams.” These signs will also inform users that it is likely a scam if they are sending money to someone they haven’t met in person or if the person claims to represent law enforcement.
“This provides one last opportunity for individuals to reconsider why they are making the transaction,” LaCava noted.
Advocates emphasize the seriousness of the situation, highlighting that $389 million was lost to cryptocurrency ATM scams nationwide in 2025, based on FBI data.
ATMs that dispense bitcoin and other cryptocurrencies have opened new avenues for scammers, as these transactions are more difficult to trace. Once funds are converted to cryptocurrency, they effectively become unrecoverable.
Cryptocurrency is not regarded as legal tender, and crypto transactions lack FDIC insurance, unlike most conventional bank transactions.
The city’s Senior Affairs Advisory Board endorsed this new law. William Peetoom, vice president of the board, expressed concerns that emerging crypto scams could undermine the independence of seniors.
Barry Berman, a volunteer with AARP California, emphasized the significant impact such scams can have.
“When an older adult falls victim to fraud, it can affect their ability to afford necessities like healthcare, food, and housing,” Berman remarked.
Scammers often target seniors due to their potential lack of digital literacy and because they may live alone, leaving them without anyone to consult about suspicious offers and requests, as noted by AARP.
The crypto ATMs in San Diego are spread throughout the city, with notable concentrations in downtown, City Heights, and the Midway District near the sports arena. The new law will apply to all existing and future crypto ATMs.
The warning signs will be available in multiple languages.
LaCava also intends to launch a city website dedicated to crypto ATM scams and a community education initiative to raise awareness about the associated risks. This website will enable residents to report crypto ATMs that lack proper warning signage.
Councilmember Sean Elo-Rivera affirmed that this new legislation is a step in the right direction, demonstrating that the city is committed to looking out for its residents.
Recently, California has imposed restrictions on the maximum amount of money that can be sent via a crypto ATM, a measure officials believe will also help combat these scams.
