Indiana Becomes First State to Ban Crypto ATMs Amid Rising Scam Losses, Sidelining 800+ Machines

By Perplexity News Staff | March 17, 2026

In a landmark move to combat cryptocurrency-related fraud, Indiana has become the first state in the U.S. to impose a complete ban on crypto ATMs, immediately sidelining approximately 800 to 900 machines across the state.[1][4] The emergency legislation, signed into law by Gov. Mike Braun on March 9, 2026, took effect right away, prompting police to notify business owners to unplug the kiosks.[1][3]

Scams Target Vulnerable Residents, Fueling Swift Legislative Action

The ban stems from escalating reports of scams exploiting these kiosks, particularly targeting the elderly. Evansville Police Department Sergeant Nathan Vancleave reported that fraud complaints involving crypto ATMs have doubled each year for the last four years, with local losses exceeding $400,000 and an average individual loss of $11,000.[1] Common schemes involve scammers posing as officials claiming victims missed jury duty or need to bail out a relative, directing them to deposit $10,000 to $20,000 at a crypto kiosk.[1]

State Rep. Wendy McNamara (R-Dist. 76), who co-authored the bill with input from Evansville police and AARP, noted $40,000 in local scams in just three months since introducing the measure.[1] Nationally, these frauds have cost billions, making Indiana’s response a model for fraud prevention.[1][4]

From Regulation to Total Ban: Legislative Journey

Originally, House Bill 1116 aimed to regulate crypto ATMs with licensing, identity verification, transaction limits, and fee caps.[2][4] However, after hearings where law enforcement and retirees highlighted the machines’ role in scams, the Senate amended it into a full ban.[2] Sen. Scott Baldwin (R-Noblesville), chair of the Senate’s financial institutions committee, argued there are “no substantial legitimate reasons” for the kiosks, citing risks of money laundering and tax evasion.[2]

The bipartisan amendment passed 7-0 in committee and unanimously in the Senate, with the bill advancing 6-1.[2] Gov. Braun signed it, stating it included provisions making it “signable,” effective upon passage.[3] On March 11, Evansville police visited over 70 local machines, informing owners—especially those with independently owned units—to disconnect them immediately to avoid liability. Major operator Bitcoin Depot voluntarily deactivated theirs remotely.[1]

AARP Hails ‘Strongest Protections in the Country’

“Indiana families deserve strong protections from fraud, especially as criminals adapt their tactics to new technologies. When it comes to these kiosks, Indiana now has the strongest protections in the country.”

— Ambre Marr, AARP Indiana Legislative Director[3][4]

AARP played a pivotal role, advocating alongside law enforcement. The organization notes similar legislation is advancing in nearly 30 states, with some like Maine securing $1.9 million in victim reimbursements from operators like Bitcoin Depot for 2022-2025 frauds.[4]

Industry Pushback and Broader Implications

Kiosk operators argued regulations would drive them out of business, but lawmakers prioritized public safety over convenience.[2] Sen. Baldwin clarified the ban targets kiosks, not cryptocurrency itself, noting individuals can still buy crypto via apps using taxed funds.[2]

Crypto ATM Scam Statistics in Indiana

Metric	Details
Machines Affected	800-900 statewide; 70+ in Evansville
Annual Fraud Growth	Doubled yearly for 4 years
Local Losses	>$400,000; avg. $11,000 per victim
Recent Local Scams	$40,000 in 3 months

National Ripple Effects

While over a dozen states have imposed regulations, Indiana’s outright ban sets a precedent.[4] Fraud prevention advocates, including AARP, vow to push similar measures elsewhere. “We aren’t done,” stated one advocate.[4] As criminals evolve tactics, states may follow suit to protect consumers from these high-risk machines.

This swift action underscores Indiana’s commitment to safeguarding residents, especially seniors, from digital-age scams. Business owners and operators must now comply or face penalties, marking the end of an era for crypto kiosks in the Hoosier State.