In early December 2025, 73-year-old Maui resident Eleanor Kameoka received a distressing call. The voice on the other end claimed to be from the Social Security Administration, warning that her benefits would be suspended due to “suspicious activity” on her accounts. The only solution? Convert cash to cryptocurrency immediately at a nearby Bitcoin ATM to “secure her funds.”
Fortunately, Kameoka recognized the warning signs of fraud before losing her retirement savings. Others across Hawaii haven’t been as fortunate, as cryptocurrency kiosk scams targeting seniors have surged dramatically throughout 2025.
“We’ve seen a 78% increase in cryptocurrency-related fraud targeting individuals over 65 in Hawaii this year alone,” explains Noelani Rivera, Financial Crimes Specialist at the Hawaii Department of Commerce and Consumer Affairs. “These scams have become significantly more sophisticated, often combining emotional manipulation with a veneer of technological legitimacy.”
The rapid proliferation of cryptocurrency kiosks across Hawaii’s islands—increasing from just 29 in 2023 to over 150 by mid-2025—has created new opportunities for scammers. These machines, which allow users to purchase cryptocurrency with cash, have become unwitting accomplices in schemes targeting vulnerable residents.
State officials report that victims, predominantly seniors, have lost approximately $4.2 million to crypto-related scams in 2025, with the average loss exceeding $18,000 per victim. This alarming trend has prompted a coordinated response from state agencies and consumer advocates.
The most prevalent scam involves impersonation of government officials or utilities representatives. Victims receive urgent calls about supposed tax liabilities, benefit suspensions, or imminent service disconnections. The caller then directs victims to withdraw cash and convert it to cryptocurrency at local kiosks, claiming this will “protect” their funds or satisfy outstanding obligations.
“These criminals exploit fear and urgency,” says Detective James Kaulia of the Hawaii Police Department’s Financial Crimes Unit. “They keep victims on the phone throughout the entire process, from bank withdrawal to crypto purchase, providing step-by-step instructions to send digital assets to their wallets.”
What makes these scams particularly effective is their psychological sophistication. Scammers often research potential victims, incorporating personal details that lend credibility to their claims. They also exploit cultural dynamics common in Hawaii, particularly respect for authority and reluctance to question official-sounding demands.
“Our senior population grew up trusting government agencies and respecting authority figures,” notes Kealoha Domingo, Director of Hawaii’s Elder Justice Coalition. “When someone claims to be from the Social Security Administration or the IRS, there’s an inherent trust that scammers exploit. Add unfamiliar technology to the mix, and it creates perfect conditions for fraud.”
In response to the growing crisis, Hawaii Governor Leilani Akana signed emergency executive order 2025-117 in November, implementing new regulations for cryptocurrency kiosk operators. The measures require enhanced warning messages about common scams, mandatory cooling-off periods for large transactions, and improved identity verification.
Cryptocurrency industry representatives have expressed mixed reactions to the new regulations. While most support consumer protection efforts, some worry about potential impacts on legitimate users.
“We absolutely condemn these scams and support reasonable protective measures,” says Marcus Chen, spokesperson for the Hawaii Blockchain Alliance. “However, we need to ensure regulations don’t inadvertently restrict access for the many residents who use these services legitimately, particularly in underbanked communities.”
Law enforcement agencies have also intensified efforts to combat these crimes, establishing a specialized Cryptocurrency Fraud Task Force in September 2025. The multi-agency initiative combines technical expertise with traditional investigative techniques to track down perpetrators, who often operate from overseas.
“Following the money is more challenging with cryptocurrency, but not impossible,” explains Kaulia. “We’re developing new capabilities to trace these transactions and working with federal partners to disrupt the networks behind these scams.”
Community education has emerged as another critical component in the fight against elder crypto fraud. The state has partnered with financial institutions, senior centers, and community organizations to deliver awareness programs specifically designed for older residents.
These efforts appear to be making an impact. According to preliminary data from the Department of Commerce and Consumer Affairs, reported incidents decreased by 12% in the final quarter of 2025 following the implementation of new educational programs and regulatory measures.
For seniors like Eleanor Kameoka who avoided becoming victims, awareness remains the best defense. “I remembered seeing a warning poster at my credit union about government agencies never asking for cryptocurrency,” she recalls. “That’s what saved me.”
As Hawaii continues navigating the intersection of emerging financial technologies and consumer protection, officials emphasize the importance of maintaining vigilance. “Cryptocurrency itself isn’t the problem,” Rivera stresses. “It’s a legitimate financial technology. The issue is how scammers exploit both the technology and human psychology to defraud vulnerable people.”
For Hawaii residents concerned about potential scams, authorities recommend verifying any urgent financial requests through official channels, never sharing verification codes, and consulting with trusted family members before making cryptocurrency transactions, especially when pressured to act quickly.
