San Diego may soon be the first city in California to target a new kind of financial scam where criminals persuade victims – mostly senior citizens – to send them money using ATMs that handle cryptocurrency.
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City officials say those scams can be scuttled by placing warning signs at all 110 cryptocurrency ATMs that have begun operating in San Diego – so they want to pass a law requiring such signs in multiple languages.
Similar warning signs required by the city of Omaha in Nebraska reduced ATM cryptocurrency scams 80% in just one year, according to the American Association of Retired Persons.
“Stopping scams before they take place is critical and can mean the difference in facing a life-altering consequence,” said City Council President Joe LaCava, who is spearheading the effort.
The council’s rules committee unanimously endorsed the proposed law Wednesday, sending it to the full council for final approval next month. If approved then, it would take effect Jan. 1.
Advocates said the stakes are high, stressing that $389 million was stolen in cryptocurrency ATM scams nationwide during 2025, according to FBI statistics.
“For our low-income seniors living on a fixed income, even a single financial loss can have devastating consequences,” said Alana Martinson of Serving Seniors, a local nonprofit.
The new law is also supported by the city’s Senior Affairs Advisory Board.
“The proposed warning sign at the point of transaction is a vivid, startling opportunity to interrupt a scam,” said board chair Gwenmarie Hilleary. “A warning sign will not prevent every scam, but if a simple warning sign causes even some San Diegans to stop before sending thousands of dollars to a scammer, it’s served its purpose.”
Scammers typically target seniors because they are often less digitally savvy and frequently live alone with no one to consult with about suspicious offers and requests, AARP officials said.
“Scammers exploit the isolation many older adults experience, as well as the trust they have – and the digital divide,” said Israel Hernandez, an official with AARP California.
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He said roughly two-thirds of the $389 million lost in crypto ATM scams last year was lost by seniors. And he said many seniors don’t report such crimes because they are ashamed of being scammed.
ATMs that handle crypto have created a new opportunity for scammers because crypto transactions are harder to trace, and once the money has been converted to crypto, it essentially can’t be recovered. Cryptocurrency is not legal tender, and crypto transactions are not FDIC-insured like most traditional bank transactions.
The new law would apply to all existing 110 crypto ATMs, which are located across the city with large clusters in downtown, City Heights and the Midway District near the sports arena.
And the law would apply to any new crypto ATMs that begin operating in the future.
The signs would say “Warning: Cryptocurrency May Be Used for Scams,” followed by warnings that it’s likely a scam if you are sending money to someone you haven’t met in person or someone who claims to be with law enforcement.
LaCava also plans to launch a city website about crypto ATM scams and a separate community education campaign about the risks. The website will also allow people to report crypto ATMs that lack warning signs.
Councilmember Kent Lee praised the proposed law and related efforts.
“With advancements in technology and the use of AI, the sophistication of scams has gotten significantly worse — even in the last couple of months,” Lee said.
Councilmember Sean Elo-Rivera said the effort is warranted because the city should be focused on financial scams just as much as street crime.
California recently limited the maximum amount of money that can be sent using a crypto ATM, which officials said will also help fight the new scam.
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