A recent legislative development empowers victims of scams involving virtual currency kiosks, commonly known as Bitcoin ATMs, to reclaim their funds. This initiative comes in light of increasing reports of scams perpetrated through these kiosks, which masquerade as traditional ATMs. On August 5, Act 557 of 2025 took effect, allowing victims to receive a full refund for fraudulent transactions if specific procedures are followed.
The Rogers Police Department is among the first law enforcement agencies to implement this law, highlighting its application through a recent news release. It states that victims must report the fraudulent transaction within 72 hours of registering as a customer and notify both the kiosk operator and a law enforcement agency within 14 days of the transaction.
The Federal Trade Commission (FTC) has documented alarming statistics regarding these scams, with losses exceeding $110 million from 2020 to 2023. Scammers often convince consumers to deposit cash into these machines under false pretenses, claiming that it’s a safeguard for their savings. Don Lisi, a spokesman for the Rogers Police Department, indicated that investigations into virtual currency scams are ongoing, although details of specific cases cannot be shared.
To mitigate potential losses, Lisi urged the community to be cautious. He warned that individuals should be skeptical of unsolicited calls or messages requesting money, particularly from someone claiming to represent law enforcement. “If you suspect a scam, cease communication and contact law enforcement,” he advised.
Rogers is not alone in addressing these issues; other states have introduced similar laws aimed at combating fraud in virtual currency transactions. Arizona’s new legislation, effective September 26, mandates refunds for scam victims and requires enhanced warnings on kiosks. Illinois has passed the Digital Asset Kiosk Act, which sets limits on transaction fees and requires operators to register with state regulators. Iowa has also taken steps to protect consumers, implementing a law that allows refunds for fraudulent transactions under specific conditions.
A notable case within Arkansas highlights the challenges faced by law enforcement. The Benton County Sheriff’s Office is currently entangled in a lawsuit filed by Bitcoin Depot, which involves the seizure of $14,120 from a kiosk. A customer, believing they were communicating with law enforcement regarding a jury duty issue, was scammed into sending funds to a digital wallet controlled by the scammer. The legal proceedings underscore the complexities surrounding these cases.
The Arkansas Attorney General’s Office has reported a sharp rise in cryptocurrency kiosk scams, emphasizing the necessity for vigilance among Arkansans. Residents are encouraged to report suspicious activities through established channels to help combat this growing threat.
Officials continue to advise that legitimate institutions will never demand payment via Bitcoin ATMs, and anyone contacted by potential scammers should ensure they verify the request through trusted sources before acting.
