Scammed at a Crypto ATM? Here's What California Seniors Need to Know
The bottom line: Even if your bank didn't stop the transaction, you have legal options.
Why it matters: Crypto ATM scams cost California seniors millions annually. Fraudsters pose as government officials, tech support, or family members to convince victims to deposit cash into cryptocurrency machines.
Act immediately
Time is critical. Take these steps now:
Call your bank — Report the fraud and request transaction stops. Creates a vital paper trail.
File a police report — Criminal documentation strengthens any future legal claims.
Contact the FTC — Report at ReportFraud.ftc.gov. They track fraud patterns statewide.
Notify California DFPI — The state's financial regulator needs to know.
Your bank may be liable
The big picture: Banks have legal duties to protect customers from financial exploitation.
Red flags they might have missed:
Multiple large cash withdrawals in short timeframes
You told staff someone instructed you to withdraw money
Unusual withdrawal patterns for your account
You appeared confused or under duress
Reality check: Even though you withdrew the cash voluntarily, banks must monitor suspicious activity. If they ignored obvious warning signs, they may share responsibility.
You have legal recourse
California's elder financial abuse laws (Welfare & Institutions Code § 15610.30) work in your favor.
Potential defendants:
The scammers (if identifiable)
Your bank (for failing to prevent obvious fraud)
The crypto ATM operator (for inadequate safeguards)
The store that has the ATM inside
Some crypto ATM companies have already been held liable for insufficient fraud prevention.
Protect yourself going forward
Set up withdrawal alerts on your accounts
Register on the National Do Not Call Registry
Share financial decisions with a trusted family member
Remember: Legitimate organizations never demand crypto ATM deposits
How we can help
An elder law attorney can:
Investigate all potentially liable parties
Pursue maximum compensation
Establish protective measures (POA, conservatorship)
Stop scammers from victimizing others
Don't wait. The sooner you act, the stronger your case.
Frequently Asked Questions
Q: Can I get my money back if the crypto transaction already went through?
A: While cryptocurrency transactions are typically irreversible, you may recover funds through legal action against your bank (if they failed to prevent obvious fraud), the crypto ATM operator, or other liable parties. Each case depends on specific circumstances.
Q: How long do I have to take legal action in California?
A: California's statute of limitations for elder financial abuse claims is generally four years from when you discovered (or should have discovered) the fraud. However, acting quickly preserves evidence and strengthens your case.
Q: What if I'm embarrassed about falling for the scam?
A: Scammers are sophisticated criminals who exploit everyone, regardless of intelligence or education. These scams are designed to create panic and override normal judgment. Reporting the crime helps protect other seniors and may lead to recovery of your funds.
Q: Will my bank refund the money since they didn't stop the suspicious withdrawal?
A: Banks aren't automatically liable, but they must monitor accounts for elder financial abuse. If your bank ignored clear red flags (repeated large withdrawals, you seemed confused, unusual activity patterns), they may be required to compensate you. An attorney can evaluate your specific situation.
Q: What evidence should I gather for my case?
A: Collect all documentation including bank statements, withdrawal receipts, the crypto ATM location and transaction details, phone records of scammer calls, any witness statements (bank employees who saw you), and notes about what the scammer told you. Police reports and agency complaints also strengthen your case.