Cryptocurrency kiosks—machines resembling ATMs that convert cash into digital currency—are increasingly under scrutiny due to their role in a surge of fraud scams targeting particularly older adults across the United States. AARP, along with various state governments and law enforcement agencies, is spearheading a nationwide campaign to regulate these kiosks and protect consumers.
These crypto kiosks are commonly found in supermarkets, gas stations, convenience stores, and other retail outlets. Unlike traditional ATMs, however, they operate largely outside regulated financial institutions and lack standard consumer protections, making them prime vehicles for scammers. According to Federal Trade Commission data, losses from crypto ATM fraud jumped nearly tenfold between 2020 and 2023, surpassing $65 million in just the first half of 2024, with actual losses believed to be significantly higher due to underreporting.
In response, AARP has pushed for legislative reforms at the state level to establish tighter controls on crypto kiosks. These reforms typically include measures such as setting daily transaction limits, requiring operators to obtain state licenses, mandating clear scam warning signage, providing receipts for transactions, and instituting refund provisions for losses caused by fraud.
Colorado led the way by enacting a law effective January 2025 that incorporates these protections. This approach has gained rapid traction; by mid-2025, at least 19 states including Arizona, Illinois, Florida, Maryland, Massachusetts, Nebraska, North Dakota, Texas, Vermont, and Wisconsin had introduced or passed similar legislation. Illinois, with over 1,600 kiosks, additionally requires operators to disclose kiosk locations to enhance oversight.
Local enforcement successes underscore the positive impact of these regulations. For example, Douglas County, Nebraska, reported an 80% decrease in financial losses from crypto kiosk scams between 2024 and September 2025 following the passage of local ordinances supported by AARP Nebraska. Similarly, Wood County authorities credit transaction limits for significantly reducing scams related to crypto kiosks.
On a community level, task forces in states such as North Carolina and Wisconsin involve stakeholders from law enforcement, consumer groups, and businesses. The North Carolina Senior Consumer Fraud Task Force urges retail locations housing crypto kiosks to post warnings about fraud risks, emphasizing that criminals exploit the irreversibility and difficulty in tracing digital currency transactions.
AARP’s advocacy extends beyond state legislation to federal initiatives. The organization supports bipartisan bills like the Strategic Task Force on Scam Prevention Act, designed to coordinate federal agencies and industry leaders to address scams comprehensively.
Despite progress, experts caution that ongoing vigilance is essential. AARP Indiana, for instance, is pushing for licensing requirements similar to those enacted in other states, aiming to establish statewide tracking of kiosks and bolster consumer protection. Advocates also seek greater retailer involvement through scam warnings and staff training.
These combined efforts reflect a growing consensus that regulating cryptocurrency kiosks is critical to preventing fraud and safeguarding vulnerable populations, particularly older adults. As cryptocurrency use expands, states and advocacy groups continue to refine policies to balance innovation with consumer security.
For more guidance on avoiding crypto kiosk scams, consumers can access resources through AARP’s Fraud Watch Network, which offers tools and tips to help protect financial assets.