BATON ROUGE, La. (WAFB) – A recently passed Louisiana law is making it harder for cryptocurrency scammers to steal money from seniors after at least four elderly victims were targeted in elaborate schemes.
The scammers told seniors in Louisiana and Texas their bank accounts were hacked, and there were child pornography charges on the accounts, threatening them with arrest if they didn’t pay thousands of dollars through Bitcoin ATMs.
“These people are crooks. They care less about you. All they’re interested in is your money,” said Alfred Mason, AARP Louisiana President.
Seniors targeted in elaborate phone schemes
Mason said one senior in the Capital area fell for the scam despite warnings from family members.
“She said her daughter kept telling her to hang up, but she didn’t listen. Then the daughter said to call the Masons. She didn’t listen. She called us after,” Mason said.
The scammers directed victims to Bitcoin ATMs, which appear similar to regular ATMs but allow users to purchase cryptocurrency with cash. The devices advertise themselves as “simple, fast, and convenient,” which scammers exploit.
New law provides multiple protections
The recently passed Louisiana law includes several safeguards to combat cryptocurrency scams. Bitcoin ATMs now display warnings that no state or government official will ever request cash deposits into the machines.
“A quick Google search will show you there are about 40 of these Bitcoin Depot ATMs in our area, with a warning at the bottom that will tell you that no state or government official will ever request that cash be deposited into one of these,” said Deon Guillory.
The machines also warn users during the transaction process. When selecting deposit amounts, a message appears stating that if someone provided a QR code or wallet ID to send funds, it’s most likely a scam.
Additional protections include a $3,000 daily limit on deposits and a 72-hour waiting period that delays transactions, giving victims time to recognize the scam and request refunds.
The new law helped the four targeted seniors recover their money, totaling $200,000.
“It is not your fault,” Mason said to anyone who has fallen for a scam.
AARP operates a fraud watch network helpline at 877-908-3360 for reporting scams.
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