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San Diego is the first city in California to adopt this type of warning-sign requirement specifically targeting scams involving cryptocurrency ATMs, according to a report by The San Diego Union-Tribune. The legislation will take effect on January 1 and apply to more than 100 machines already operating throughout the city, as well as any additional machines installed in the future.
The new rules require operators to display notices warning customers that cryptocurrency may be used in scams. The signs will also identify common red flags, including requests to transfer money to someone the customer has never met in person or to an individual claiming to represent law enforcement.
Council President Joe LaCava, who spearheaded the legislation, said the measure is intended to interrupt fraudulent transactions before victims lose their money.
“Stopping scams before they take place is critical and can be the difference between facing life-altering consequences or continuing to meet basic needs,” LaCava said.
The initiative reflects growing concern among local officials and consumer advocates about criminals using cryptocurrency ATMs to persuade people to convert cash into digital assets and transfer the funds to fraudulent recipients.
Unlike conventional cash withdrawals, these transactions can move money into cryptocurrency wallets that are difficult to trace. Once a victim authorizes a transfer, recovering the funds can be extremely difficult, leaving individuals with limited options for recouping their losses.
The financial consequences of cryptocurrency ATM fraud have become a central concern for advocates supporting the new legislation. According to FBI statistics cited in the original report, nationwide losses associated with cryptocurrency ATM scams reached $389 million during 2025.
Older adults are among the groups frequently targeted by these schemes. Scammers may exploit their trust, create a sense of urgency or claim that an immediate payment is necessary to resolve a supposed legal or financial problem. Victims may be instructed to withdraw money from their bank accounts, visit a cryptocurrency ATM and transfer the converted digital assets to a wallet controlled by the fraudster.
The warning signs required under San Diego’s new law are designed to make customers question such instructions before completing a transaction. In particular, requests involving strangers or people claiming to be police officers will be highlighted as potential indications of fraud.
AARP has warned that older adults can be particularly vulnerable when they lack someone they trust to consult about suspicious requests. Social isolation and limited familiarity with digital financial services may also make it harder for some victims to recognize manipulation.
Barry Berman, a volunteer with AARP California, emphasized that the consequences can extend well beyond the immediate loss of money.
“When an older adult loses money to fraud, it can impact their ability to pay for necessities such as healthcare, food and housing,” Berman said.
The impact of a Crypto ATM scam can therefore reach essential household expenses, potentially affecting a victim’s ability to maintain financial independence. For retirees and others living on fixed incomes, the loss of savings may be particularly difficult to overcome.
Cryptocurrency transactions also differ from many traditional banking transactions because digital assets are not covered by Federal Deposit Insurance Corporation protections in the same way as eligible deposits held at insured banks. The lack of equivalent protection can leave victims exposed when funds are transferred to fraudulent recipients.
Under the new legislation, cryptocurrency ATM operators must display the notice: “Warning: Cryptocurrency May Be Used for Scams.”
The signs will also explain that a transaction may be fraudulent if the customer is sending funds to someone they have not met in person or to someone claiming to be a law enforcement official.
LaCava described the signs as a final opportunity for customers to reconsider a transaction before proceeding.
“It is one last opportunity to cause somebody to pause about why they are there,” LaCava said.
The warnings will be printed in multiple languages, an approach intended to make the information accessible to San Diego’s diverse population. The requirement will cover machines across the city, including clusters in downtown San Diego, City Heights and the Midway District near the sports arena.
The city’s Senior Affairs Advisory Board endorsed the legislation, reflecting concerns about the potential impact of cryptocurrency fraud on older residents. Councilmember Sean Elo-Rivera also supported the measure, saying it demonstrates that the city is taking steps to protect its residents.
In addition to the mandatory notices, LaCava plans to introduce a city website providing information about cryptocurrency ATM scams. The website is also expected to allow residents to report machines that do not display the required warnings.
The proposed education campaign would complement the signs by helping consumers understand the tactics scammers use and the risks associated with transferring money through cryptocurrency ATMs.
Although warning signs cannot eliminate fraud, officials hope that clear, visible information will encourage customers to verify suspicious claims and reconsider unusual payment requests before sending money.
San Diego’s local initiative comes as California takes broader steps to address risks associated with cryptocurrency ATMs. The state has recently limited the amount of money that can be sent through these machines, a restriction officials said could help reduce the scale of fraudulent transactions.
The statewide measure and San Diego’s warning-sign requirement address different aspects of the problem. Transaction limits can restrict the amount of money exposed in certain circumstances, while warnings are intended to help customers recognize fraud before authorizing a payment.
Together, the measures reflect an effort to reduce the financial damage caused by scams that rely on victims converting cash into cryptocurrency and transferring it to criminals.
However, the effectiveness of San Diego’s approach will depend partly on whether customers notice and understand the warnings, recognize suspicious requests and refuse to proceed when something appears wrong. Public awareness campaigns and accessible reporting channels could also help residents identify problems and alert authorities.
The reported experience of Omaha, Nebraska, offers a potential benchmark. According to the American Association of Retired Persons, similar warning signs introduced there reduced cryptocurrency ATM scams by 80% in one year. The figure was cited in support of San Diego’s legislation, although the results may not necessarily be replicated in every city.
For consumers, the most important safeguard remains caution when someone demands payment through a cryptocurrency ATM, particularly when the request comes from a stranger or someone claiming to represent a government agency.
San Diego’s new law does not eliminate the underlying risks of cryptocurrency transactions, but it introduces a visible intervention at the point where cash is converted into digital assets. By combining mandatory disclosures, public education and reporting options, city officials hope to prevent more residents from becoming victims of a Crypto ATM scam.
The January 1 implementation date will mark the beginning of the city’s new requirements. Whether the policy produces a sustained reduction in losses will become clearer as residents encounter the warnings and authorities assess the continuing scale of cryptocurrency ATM fraud.
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