*NOTE:* If this communication should be sent to another contact in your organization, please send the updated contact information to [email protected] <[email protected]> and indicate whether this is an additional or replacement contact. Thank you.

*FOR IMMEDIATE RELEASE FROM
**THE* *WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS*

*Wednesday, Jan. 10, 2024
**CONTACT*:    
Lyn Peters, DFI Director of Communications
PH 360-902-8731, [email protected]

Jeanju Choi, Division of Consumer Services, Chief of Regulatory Affairs
PH 360-725-7821, [email protected]

*WA DFI ISSUES POLICY STATEMENT AND CONSUMER ALERT TO INCREASE CONSUMER AWARENESS OF SCAMS INVOLVING VIRTUAL CURRENCY KIOSKS *

*"Washington State Department of Financial Institutions clarifies disclosure requirements to caution consumers about scams, and issues a consumer alert on scams involving virtual currency kiosks"*

OLYMPIA – The Washington State Department of Financial Institutions’ (DFI) Division of Consumer Services issued a policy statement clarifying that prior to initiating a transaction, virtual currency kiosk operators must provide consumers with a separate clear and conspicuous disclosure that once money or virtual currency has been sent to a scammer, the money or virtual currency is gone.

Virtual currency kiosks (also known as Bitcoin ATMs or crypto kiosks) appear to be increasingly used to perpetuate scams. In order to effectively communicate the risks associated with entering into a virtual currency transaction, DFI is directing virtual currency kiosk operators to provide a separate disclosure to consumers clearly stating that there may be no recourse available to the consumer even if they are a victim of a scam. This disclosure must be provided to the consumer before they transact with the virtual currency kiosk. DFI’s policy statement can be found here (link) [ [link removed] ].

“It’s important that consumers be forewarned of the potential fraud perpetrated in relation to these kiosks,” DFI Director Charlie Clark noted. “Scammers often get people into a heightened emotional state of fear or even panic, making it more difficult to clearly assess the situation. It is our hope that these warnings help remind people to pause and consider why they are being asked to use a virtual currency kiosk before sending money to anyone.”

The Department of Financial Institutions also posted a consumer alert with helpful information so that consumers continue to stay informed about current scams. The consumer alert can be found here (link). [ [link removed] ]

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*About DFI* ▪ www.dfi.wa.gov [ [link removed] ] ▪ 360-902-8700 ▪ 877-RINGDFI (746-4334)
The Washington State Department of Financial Institutions regulates a variety of financial service providers such as banks, credit unions, mortgage brokers, consumer loan companies, payday lenders and securities brokers and dealers. The department also works to improve financial education throughout Washington through its outreach programs and online clearinghouse www.dfi.wa.gov/financial-education [ [link removed] ]. In addition to posting information about licensees and administrative actions, DFI uses the Web and social media to provide financial education information: www.facebook.com/wadfi ■ [ [link removed] ] ■ www.instagram.com/wastatedfi/ [ [link removed] ] ■ www.linkedin.com/company/state-of-washington-department-of-financial-institutions/ [ [link removed] ] ■ twitter.com/dficonsumers [ [link removed] ] ■ [link removed] ■ [link removed] ■ www.homeownership.wa.gov [ [link removed] ]  

 

*About the Division of Consumer Services* ▪ www.dfi.wa.gov/cs [ [link removed] ] ▪ 360-902-8703 ▪ 877-746-4334
The mission of the Division of Consumer Services is to protect consumers from illegal and fraudulent lending practices. The division accomplishes its mission through licensing, licensee examinations, investigations, and enforcing selected state and federal statutes and rules. Consumer Services regulates the business activities of consumer loan companies, mortgage brokers, money transmitters and currency exchangers, as well as check cashers and sellers, also known as "payday lenders." The Division is entirely self-supporting, with funding provided by licensing, auditing, and policing of regulated businesses and individuals. No money is received from the state General Fund or other public revenue source.

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This email was sent to [email protected] using GovDelivery Communications Cloud on behalf of: Washington State Department of Financial Institutions · 150 Israel Rd SW  · Tumwater, WA 98501 GovDelivery logo [ [link removed] ]