State rep: Stop crypto crooks from scamming Kansas families, seniors | Opinion

Kansans are being targeted at an alarming rate by financial scammers who are moving faster than the laws meant to protect consumers.

From text message scams to complex cryptocurrency schemes that drain life savings through unregulated digital kiosks and overseas digital wallets, fraud is no longer an abstract problem.

It is a daily threat to Kansas families and seniors. Nationwide, cryptocurrency-related fraud has surged in recent years.

According to the FBI’s Internet Crime Complaint Center, Americans reported approximately $9.3 billion in losses tied to cryptocurrency scams in 2024.

And Kansans are not immune to these increasingly sophisticated schemes. Many of the cases reported here in Kansas involve Bitcoin ATMs and digital kiosks placed in convenience stores, where criminals coach victims in real time to deposit cash into digital wallets that are nearly impossible to recover.

We all recognize the toll payment text scams that seem to reach every Kansas phone.

But the scams we are now confronting are far more sophisticated. They are organized, targeted, and designed to manipulate trust.

They are stealing retirement savings, emptying bank accounts, and leaving Kansas families with no way to recover what was taken.

Fraud is evolving, and Kansas law must evolve with it. That is why the Kansas Legislature is making the protection of Kansans from digital asset fraud a priority this year.

We are advancing two reforms focused on stopping scams earlier, strengthening oversight, and ensuring victims are not left without options after their money is gone.

The first proposal is designed to put strong guardrails around cryptocurrency kiosks and digital currency transactions. Its purpose is simple. Protect Kansans.

It closes loopholes that allow scammers to move money quickly and anonymously, strengthens law enforcement oversight, requires meaningful fraud warnings, and creates cooling-off periods and refund protections so that Kansas families and seniors have time to realize something is wrong before their savings are permanently lost.

The second proposal allows financial institutions to act when there is a reasonable belief that a customer is being scammed.

Today, even when warning signs are clear, financial institutions often lack the authority to pause a transaction or notify a trusted family contact.

This reform creates a limited window for reporting and temporary holds so that suspected fraud can be investigated before the money is lost.

Kansas is doing its part, but state action alone is not enough.

As Congress considers major legislation governing digital assets, federal lawmakers must approach this issue responsibly and ensure that families and seniors are not left exposed to unnecessary risk.

Digital markets can offer innovation and opportunity, but without strong enforcement standards and clear accountability, they also open the door to new forms of financial crime.

Protecting Kansans means closing regulatory gaps, strengthening oversight, and giving law enforcement the tools they need to stop bad actors before more people are harmed.

Kansas is leading. Washington must now deliver federal policies that match that commitment and put the protection of American families first.

— Rep. Nick Hoheisel, a Wichita Republican, is chairman of the Kansas House Committee on Financial Institutions and Pensions.