Indiana Lawmakers Move to Rein In Crypto Kiosks as Hoosiers Lose Over $1 Million to Scams

INDIANAPOLIS – Indiana lawmakers are advancing new regulations targeting cryptocurrency kiosks, also known as bitcoin or crypto ATMs, amid a surge in scams that have cost Hoosiers more than a million dollars in recent years.[2][4] The proposed rules follow mounting pressure from law enforcement and consumer advocates who say the machines have become a favored tool for fraudsters, especially those preying on older adults.[1][2]

House Bill 1116, now before the General Assembly, would impose transaction limits, fee caps and mandatory anti-fraud warnings on the kiosks, which allow users to convert cash or debit payments into cryptocurrency that can be sent anywhere in the world in minutes.[2][4] Supporters say the measure is designed to put “strong guardrails” around a rapidly growing sector that currently operates with far fewer consumer protections than traditional financial services.[2][4]

Crypto kiosks at the center of a “scam-demic”

Law enforcement officials across Indiana have reported a sharp rise in scams involving crypto kiosks over the last three years.[1][2] The machines, typically located in gas stations, convenience stores and groceries, resemble standard ATMs but send funds as digital assets rather than bank transfers.[1]

Evansville Police Department’s Financial Crimes Unit began tracking cases tied to kiosks in 2022 and has seen complaints climb each year.[1] By 2025, Evansville residents alone had lost around $400,000 connected to the machines, according to detective Sgt. Nathan VanCleave, who described the broader environment as a “scam-demic.”[2] He told lawmakers that scams are “exploding” and “on steroids because of cryptocurrency.”[2]

These losses mirror a national pattern. The FBI reports that consumers across the United States lost $246.7 million via crypto ATMs in 2024, a 31 percent jump from 2023.[1] Among cases where age was known, Americans over 60 accounted for 86 percent of reported losses.[1] In Indiana, consumers reported losing $125.1 million to crypto kiosk, gift card and other internet crimes in 2024, a figure experts say likely understates the true scope of fraud because many victims never report their experiences.[1]

How the scams work

Investigators and advocates say nearly any kind of con can be routed through a crypto kiosk once a victim is convinced to withdraw cash and feed it into a machine.[1][2] Scammers often pose as government agents, law enforcement, tech support or representatives of banks and well-known companies.[1][2] They commonly initiate contact through a phone call or text message, then manufacture a sense of urgency.

“These scams often begin with a phone call or a text message where criminals frequently impersonate government officials or trusted businesses,” Ambre Marr, state legislative director for AARP Indiana, told lawmakers during testimony on HB 1116.[2] Victims are given step-by-step instructions to withdraw cash, locate a crypto ATM, and deposit the money to purchase cryptocurrency that is then routed to a wallet controlled by the criminal, she said.[2]

Crypto kiosks can look deceptively familiar, often placed near lottery machines or traditional ATMs in busy retail settings.[1][3] Once a victim deposits funds and a transaction is confirmed on the blockchain, the transfer is effectively irreversible, leaving little recourse to recover the money.[3] According to Evansville police, the average fraud-related transaction they have documented at kiosks is nearly $12,000 per victim.[1]

National investigations have highlighted how profitable the business can be for operators even when scams are suspected. A December 2024 case at a Circle K convenience store in Indiana saw criminals guide a victim into depositing thousands of dollars into a Bitcoin Depot kiosk, which converted the cash to bitcoin and took roughly $2,000 in fees on that single series of transactions.[3] The victim “lost every dime,” according to reporting by the International Consortium of Investigative Journalists.[3]

House Bill 1116: Limits, caps and warnings

HB 1116, authored by Rep. Wendy McNamara, R-Evansville, seeks to curb such losses by reshaping how crypto kiosks operate in Indiana.[2][4] The bill would:

• Cap transaction size at no more than $1,000 in a single 24-hour period and $10,000 over 30 days per person.[2][4]
• Limit fees charged by kiosk operators to approximately 3 percent per transaction, a significant reduction from current fee structures reported in some cases.[4]
• Require prominent signage and on-screen warnings describing common scam tactics and advising customers to stop and verify before sending funds.[2][4]

McNamara told the House Financial Institutions Committee that the legislation is not aimed at shutting down cryptocurrency use but at aligning kiosk operations with norms applied to other financial services.[4] “It will establish strong guardrails that are similar to other financial services and then protect our most vulnerable,” she said.[2][4]

The bill responds directly to concerns raised by AARP Indiana, which has mounted a public campaign warning older adults about crypto ATM fraud.[1][2] The group argues that kiosks, when left largely unregulated, offer scammers a fast, anonymous payment channel that is difficult for victims, banks or police to interrupt once a transfer begins.[1][2]

Industry pushback over fee caps and limits

While consumer advocates and law enforcement broadly support the bill, several cryptocurrency companies and kiosk operators have warned that HB 1116 could drive them out of the Indiana market.[2][4] Industry representatives say they agree that fraud is a serious problem and back measures such as clearer warnings and better consumer education, but they argue that strict fee and volume limits would undermine the economics of running the machines.[2][4]

During a recent hearing, Michael Geiselhart, government relations manager for Bitcoin Depot, told lawmakers that a 3 percent fee cap would function less as regulation than as “an eviction notice” for many operators.[4] Companies maintain that higher fees reflect the costs and risks of handling cash, managing compliance and operating machines in numerous small retail locations.[3][4]

Some operators also contend that the proposed daily and monthly limits would inconvenience legitimate customers who rely on kiosks for remittances, small business transactions or rapid transfers when they do not have traditional bank access.[2] They have urged lawmakers to consider alternative approaches such as enhanced identity checks, real-time fraud monitoring and closer collaboration with law enforcement, rather than what they view as blunt caps.[2][4]

Older Hoosiers disproportionately targeted

Multiple witnesses told Indiana lawmakers that older residents are bearing the brunt of crypto kiosk-related scams.[1][2] National FBI data shows Americans over 60 suffer the overwhelming majority of losses in crypto ATM fraud cases.[1] AARP Indiana says many of the Hoosier victims it encounters are retirees who believe they are following instructions from a bank fraud department, a Social Security official or even local police.[1][2]

In some instances, scammers have kept victims on the phone while they drive to multiple kiosks, withdrawing cash from several bank branches along the way.[2] Once at the machine, the victim is walked through each step of inserting money and scanning a QR code that sends funds to a criminal’s wallet.[2][3] Advocates argue that prominent signage and on-screen messages required under HB 1116 could interrupt that pattern at the last possible moment, prompting questions that might lead a victim to hang up or contact real authorities.[2][4]

AARP Indiana has paired its legislative push with community education, distributing materials that warn residents that government agencies and legitimate companies will not demand payment via crypto ATM, gift card or gold.[1][2] The group also urges family members to talk with older relatives about high-pressure calls requesting urgent payment and to encourage them to verify independently before sending money.[1][2]

Balancing innovation and consumer protection

Indiana’s debate mirrors a national reckoning over how to regulate cryptocurrency access points embedded in everyday retail locations.[3][4] Retailers and kiosk operators have benefited from transaction fees and increased foot traffic, while regulators and prosecutors grapple with how to protect consumers without shutting off access to emerging financial tools.[3]

Elsewhere in the Midwest, regulators have scrutinized bitcoin ATM operators amid allegations that a significant portion of transactions are tied to scams. In Iowa, the attorney general alleged in a 2025 lawsuit that more than half of one company’s kiosk transactions in the state between 2021 and 2024 involved fraudulent schemes, calling the machines “instrumentalities of massive fraud.”[3] That case, against Bitcoin Depot, has drawn national attention from consumer advocates and the crypto industry alike.[3]

If Indiana enacts HB 1116 and its provisions take effect immediately, as currently written, the state would join a small but growing group of jurisdictions that explicitly cap fees and limit transaction sizes for crypto kiosks in an effort to blunt scam losses.[2][4] Supporters say they hope the changes will give victims more time and more information before they risk their savings, while signaling that the industry must share responsibility for reducing fraud tied to its machines.[1][2][4]