AWC-supported SB 5280 is moving along in the legislative process to establish new requirements on money kiosks that have become hotbeds for fraud.

Cryptocurrency and virtual currency kiosks have popped up in public supermarkets, gas stations, bars, and restaurants around the country in recent years. They look similar to traditional ATMs and allow people to conduct virtual money transactions, such as converting money into cryptocurrency and placing it in a digital wallet.

However, instances of fraud involving the kiosks are increasingly reported to law enforcement, especially victimizing older Americans targeted by sophisticated fraud schemes. The bill cites a Federal Trade Commission report that found that in 2023, Washington state reported a higher rate per capita of imposter scams than any other state.

The scams work similar to other known scams: A caller convinces someone that money is urgently owed, then directs the target to a local virtual kiosk to deposit real money. This money is then sent to the scammer’s virtual wallet. By the time a victim realizes they have been scammed, the lost money is frequently untraceable via these largely unregulated kiosks. Amounts lost sometimes reach hundreds of thousands of dollars for a single victim.

SB 5280 is sponsored by Sen. Claudia Kauffman (D–Kent) and aims to create a policy solution to the issue. The bill adds requirements to the Uniform Money Services Act (RCW 19.230) for licensed operators of virtual currency kiosks by establishing:

• A daily transaction limit;
• Fee restrictions;
• Disclosure requirements;
• A receipt requirement; and
• A requirement for reporting branch locations and authorized delegates.

AWC supports this bill to help protect our residents from common scams. The bill was voted out of the Senate and now moves to the House side of the Legislature with a chance to engage this week.

Dates to remember

SB 5280 is scheduled for a public hearing in the House Consumer Protection & Business Committee on Wednesday, February 18, at 1:30 pm.