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HONOLULU (HawaiiNewsNow) – State Representative Scot Matayoshi is proposing legislation to combat fraud and scams and restrict cryptocurrency ATM purchases after hearing multiple accounts of kupuna being victimized.
Matayoshi, D, who represents Kaneohe and Kailua and chairs the House Consumer Protection and Commerce Committee, said a relative told him about a friend who was defrauded out of hundreds of thousands of dollars through an online scam.
“I think every single person I’ve talked to has known a cousin, an auntie, a friend of an auntie or a friend of a mom or whatnot that has been defrauded or at least has experienced someone trying to defraud them of money,” Matayoshi said.
Bank teller freeze authority
One bill would allow bank tellers to freeze transactions if they suspect fraud is occurring. Matayoshi said bank tellers serve as the first line of defense because many seniors visit banks in person and have relationships with tellers.
“If the bank teller believes that there’s a fraud, a fraudulent transaction happening, they can put a freeze on it and for a couple of days or however long they need in order for the person to honestly just snap out of it,” Matayoshi said.
He said victims typically realize they’ve been scammed within 24 to 48 hours, but by then the money is already gone and difficult to recover.
Cryptocurrency ATM restrictions
Matayoshi is also introducing legislation to prohibit cryptocurrency purchases through kiosks found inside grocery stores and convenience marts across the state, citing their frequent use in fraudulent transactions targeting seniors.
“These crypto kiosks, in my opinion, are mostly used for fraudulent transactions,” Matayoshi said. “The benefit to them doesn’t outweigh the massive fraud going on with these ATMs.”
The bill would still allow people to withdraw money from crypto ATMs if they already own cryptocurrency and want to convert it to cash.
Store owners have reported seeing seniors at crypto kiosks with cash, talking on phones with someone guiding them through transactions. Matayoshi said scammers often instruct victims to use the machines after claiming their relatives are in danger and need bail money.
Deceptive mailer protections
Another bill targets deceptive mailers that appear to be from mortgage companies or government agencies but are actually third-party services charging excessive fees.
“I’ve been getting a lot of letters that purport to be my mortgage company, that purport to be my car company,” Matayoshi said. The bill would require large disclaimers stating the mailers are not from actual companies and make transactions voidable if proper disclosures aren’t included.
School cell phone ban
Matayoshi is also proposing a school-wide cell phone ban from “bell to bell” that would protect teachers and schools from liability when confiscating devices.
As a former seventh-grade science teacher in Nanakuli, Matayoshi said teachers currently avoid confiscating phones worth hundreds or thousands of dollars due to liability concerns.
“If the cell phone broke, if another kid stole it out of my desk, if it got lost, then I would be held responsible for it,” Matayoshi said.
The bill includes exceptions for emergencies and educational use, and requires parents to pick up confiscated phones. Matayoshi said removing phones from classrooms could reduce bullying and allow students to interact without fear of being recorded.
Budget concerns
Matayoshi said his measure of success for the legislative session will be ensuring essential services like SNAP benefits and Medicaid are maintained despite tight budget constraints.
“Success for me at the end of session would be making sure that those core essential services are still being taken care of, that the government is still providing for people in need,” Matayoshi said.
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