Indiana Lawmakers and Advocates Push to Protect Consumers From Rising Crypto ATM Scams
INDIANAPOLIS, IN – As cryptocurrency scams continue to surge, Indiana officials and consumer advocates are intensifying efforts to protect Hoosiers from fraudulent schemes involving crypto ATMs, also known as Bitcoin kiosks.
According to recent reports, scams involving crypto ATMs have increased rapidly in Indiana over the past few years, with new cases emerging in 2022 and sharply rising through 2023 and 2024. Data provided by the FBI indicates that Indiana consumers lost an estimated $125.1 million in 2024 alone from crypto kiosk fraud, gift card scams, and other internet crimes—though experts believe this number significantly underrepresents the true scale, as many incidents go unreported.
AARP Indiana has emerged as a key voice in combatting these scams, urging state legislators to introduce protective legislation in the upcoming 2026 session. Their advocacy aligns with a broader push at the federal level, where lawmakers have introduced measures such as the Crypto ATM Fraud Prevention Act of 2025, aimed at preventing fraudulent transactions at virtual currency kiosks and increasing regulatory oversight.
Christopher Knight, a forensic accountant with the FBI’s Indianapolis Field Office, highlighted the growing problem in the state. He noted a marked increase in crypto ATM-enabled scams over the last six months. Unlike traditional debit or credit card fraud, once money is deposited into a crypto ATM, it is transferred almost immediately overseas via cryptocurrency wallets, making recovery efforts almost impossible.
“It’s very seldom we can recover money once it goes through these crypto ATMs,” Knight explained. He also emphasized that scammers prefer these machines because cryptocurrency transactions are decentralized and anonymous, severely limiting law enforcement’s ability to trace stolen funds.
Older adults are particularly vulnerable. Many are less familiar with digital currencies like Bitcoin and are thus easier targets for scam artists. AARP Indiana’s fraud education programs have focused heavily on raising awareness among seniors, teaching them how to recognize and avoid these high-tech cons.
Alongside consumer groups, law enforcement agencies are actively warning the public. The Vanderburgh County Sheriff’s Office, for example, explicitly cautions against phone scams that coerce victims into withdrawing cash and depositing it into crypto ATMs. Scammers often impersonate government or law enforcement officials, creating false urgency and instructing victims to keep the transaction secret from family and friends.
Sheriff Noah Robinson stated, “Under no circumstances will a legitimate organization ask you to transfer money by a Bitcoin ATM. If you receive such a request, it is a scam. Hang up immediately and report the incident.”
Experts recommend vigilance and reporting to local authorities if targeted. Consumers should be skeptical of any unsolicited calls demanding immediate crypto payments or withdrawals.
As the 2026 legislative session approaches, Indiana lawmakers face mounting pressure to enact laws that could require stricter regulations for crypto ATM operators, enhance fraud detection efforts, and impose penalties on scammers. Advocates hope that through combined efforts in legislation, education, and law enforcement, Hoosiers can be better protected against the rising tide of crypto ATM fraud.