SAN DIEGO, October 22, 2026 — The San Diego City Council unanimously passed a law requiring anti-fraud warning signs on cryptocurrency ATMs, making it the first city in California to enact such a mandate.
Council Action Targets More Than 110 Kiosks
Cryptocurrency ATMs are electronic devices that accept or dispense cash in exchange for a digital financial asset. According to city data, there are estimated to be more than 110 cryptocurrency ATMs in San Diego. These machines can be found in grocery stores, gas stations and corner stores. The new law requires owners and operators to post anti-fraud warning signs directly on or near the machines.
City Council President Joe LaCava introduced the agenda item to address growing financial threats. According to LaCava, warning signs will be visible to all who use cryptocurrency ATMs and kiosks. The bottom line is simple protection. “This is a simple solution that can protect our most vulnerable residents from devastating financial loss,” LaCava said in a statement.
Millions Lost to State and Local Scams
The figure that matters most to financial regulators involves mounting statewide losses. According to a city report citing the 2025 Internet Crime Complaint Center, California recorded more than $390 million in cryptocurrency scam losses. Locally, the County of San Diego Elder Justice Task Force reported $140 million in countywide scam losses suffered by seniors.
Unlike traditional bank ATMs, where transactions can often be traced and funds recovered, crypto ATMs leave no trace. According to a statement from LaCava’s office, funds deposited into crypto kiosks are not recoverable and victims have no recourse. Scammers favor these kiosks precisely because the transactions lack standard banking safeguards.
Support from Law Enforcement and Community Boards
San Diego Police Chief Scott Wahl supported the initiative, noting the rapid evolution of digital finance fraud. “Crypto scams are evolving quickly, and scammers are constantly finding new ways to exploit people,” 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.”
Community organizations have also backed the measure. Gwenmarie Hilleary, chair of the Senior Affairs Advisory Board of the city of San Diego, stated that her group strongly supports the action to prevent crypto machine fraud. According to Hilleary, placing warning signage at the point of action will turn victims into crime fighters and stop scams one by one. AARP California announced it looks forward to working with community leaders on continued education, business engagement and community outreach.
Implementation Timeline and Future Outreach
Investors and kiosk operators will note specific deadlines ahead. The law must survive a second council vote and receive the mayor’s signature before taking effect on January 1, 2027. Once implemented, city officials and community partners plan to host a “Day of Action” near the effective date to drive public outreach and education efforts.
California Leads in Statewide Crypto Fraud Losses
Federal data underscores the scale of the problem driving the local mandate. According to a city report citing the 2025 Internet Crime Complaint Center, California led the nation in cryptocurrency scam losses with more than $390 million reported statewide. The FBI’s Internet Crime Complaint Center tracks these incidents annually, and the 2025 figures show California far outpacing other states in reported victim losses.
The magnitude of the statewide total reflects a broader trend identified by federal investigators. California’s share of those losses highlights why local officials viewed point-of-sale warnings as a necessary first layer of defense for consumers using the more than 110 kiosks operating in San Diego.
Sources
- Council passes law to require anti-fraud warnings on cryptocurrency ATMS
- San Diego Mandates Crypto ATM Scam Warnings | Newsradio 600 KOGO | KOGO News
- San Diego becomes first city in CA to require warning signs at crypto ATMs
Photo: Benoît Prieur / wikimedia (CC CC0 1.0)
