ATMs in the city of San Diego that accept cash in exchange for cryptocurrency may soon be required to carry warning signs to prevent fraud and scams.
Cryptocurrency ATMs are electronic devices that can accept or dispense cash in exchange for a digital financial asset. They resemble traditional bank ATMs and it’s estimated that there are more than 110 in the city, though there are some questions as to whether the data, from the state, is up to date.
A law unanimously passed Tuesday by the San Diego City Council requires owners and operators to post an anti-fraud warning sign on or near the machines.
“This is a simple solution that can protect our most vulnerable residents from devastating financial loss,” said Council President Joe LaCava, who introduced the agenda item. “Warning signs will be visible to all who use cryptocurrency ATMs and kiosks.”
The California Department of Financial Protection and Innovation maintains a database of cryptocurrency ATMs in the state. The machines can be found in grocery stores, gas stations and corner stores and can have legitimate purposes.
However, scams using traditional bank ATMs can often be traced and funds recovered, while crypto ATMs leave no trace, funds are not recoverable and victims have no recourse, according to a statement from LaCava’s office.
San Diego is the first city in the state to pass such a law.
“The Senior Affairs Advisory Board of the city of San Diego strongly supports Council President LaCava’s action to prevent crypto machine fraud,” Board Chair Gwenmarie Hilleary said. “Signage warning consumers about crypto fraud at the point of action – on the crypto kiosks – will turn victims into crime fighters and stop these scams one by one.”
The law, if it survives a second council vote and secures the mayor’s signature, will take effect on Jan. 1, 2027. LaCava and community partners will host a “Day of Action” near the time when the law would take effect to begin outreach and education efforts.
An official with AARP California said the organization “looks forward” to working with community leaders and partners on continued education, business engagement and community outreach.
According to a city report, the 2025 Internet Crime Complaint Center found more than $390 million in cryptocurrency scam losses throughout California. The County of San Diego Elder Justice Task Force reported $140 million in countywide scam losses by seniors.
“Crypto scams are evolving quickly, and scammers are constantly finding new ways to exploit people,” Police Chief Scott Wahl said. “This initiative is about giving our community the information they need to recognize the warning signs and protect themselves. The best time to stop a scam is before it starts.”
