Indiana Lawmakers Target Crypto Kiosk Scams as Hoosiers Lose Over $1 Million

Legislature moves to regulate cryptocurrency kiosks amid surge in fraud cases

INDIANAPOLIS – Indiana lawmakers are advancing new legislation aimed at cracking down on cryptocurrency kiosk scams, responding to a sharp rise in fraud cases that has cost Hoosiers more than a million dollars at so‑called crypto ATMs placed in everyday businesses.[1] These kiosks, which allow users to convert cash into digital currencies such as Bitcoin, have become a favored tool for scammers posing as officials, service providers, and investors.[1][2]

Rising losses push issue onto Statehouse agenda

Police and consumer advocates across Indiana report that fraud tied to cryptocurrency kiosks has escalated in just a few years from an emerging threat to a common feature of financial crime reports.[1][2] In Evansville alone, detectives saw their first kiosk fraud cases in 2022, followed by 11 in 2023, 20 in 2024, and 22 in just the first seven months of 2025, with an average fraudulent transaction approaching $12,000 per victim.[1] Statewide, Indiana consumers reported losing $125.1 million to crypto kiosk, gift card and related internet crime in 2024, according to FBI data, though experts stress such crimes are typically underreported.[1]

These mounting losses have drawn the attention of state legislators, who are now considering proposals to tighten oversight of cryptocurrency kiosks and the companies that operate them. Lawmakers and advocates argue that the largely unregulated landscape around these machines has made it easier for criminals to exploit vulnerable residents, particularly seniors.[1][2]

How scammers use cryptocurrency kiosks

The scams often begin with a phone call, email, or text message from someone pretending to be a law enforcement officer, government agent, utility representative, technical support worker, or a trusted financial adviser.[1][2] Victims are told they face an urgent problem: a supposed arrest warrant, an overdue bill, a frozen bank account, or a once‑in‑a‑lifetime investment opportunity.[1][2]

The caller then directs the victim to a nearby cryptocurrency kiosk – commonly located in gas stations, convenience stores, and grocery chains – and instructs them to deposit cash into the machine to purchase cryptocurrency, which is then transferred to a digital wallet controlled by the scammer.[1][2][3] Because crypto transactions are fast, cross‑border, and difficult to reverse, once the money is sent it is typically gone for good.[1][3]

Law enforcement agencies say the tactic has become especially prevalent in scams targeting older adults, who may be less familiar with cryptocurrency and more likely to comply with high‑pressure demands from someone claiming to be an authority figure.[1][2] The Fort Wayne Police Department recently issued a public warning describing the “misuse of virtual currency kiosks” as a growing concern and urging residents to speak with older relatives about the risk.[2]

Local stories mirror a national problem

The patterns playing out in Indiana mirror a broader national trend. Across the United States, regulators and investigators have documented a surge in fraud linked to Bitcoin and other crypto ATMs, with Americans reporting hundreds of millions of dollars in losses.[3][4] An investigation by the International Consortium of Investigative Journalists found that in some states more than half of transactions on certain crypto ATM networks were suspected of being tied to scams over a multiyear period.[3]

Retailers and kiosk operators often profit from placement fees and transaction charges, even as complaints mount. In one Midwestern case, a grocery chain cut off a kiosk operator after concluding the machines had become “instrumentalities of massive fraud,” citing customers who were defrauded almost weekly.[3] In Minnesota, state officials reported that scammers continued to exploit crypto ATMs even after a law imposing a $2,000 daily limit on new users took effect, simply instructing victims to make multiple smaller deposits under different names.[3]

Indiana authorities say the state is not immune. FBI forensic accountants in the Indianapolis field office report a clear increase in crypto ATM‑enabled scams in recent years, with kiosks, gift cards, and even gold now among the most common payment methods demanded by fraudsters.[1] Local police departments have documented cases in which scammers even tricked convenience store employees into feeding cash into in‑store crypto machines, believing they were following directions from company management.[3]

Key provisions under discussion at the Statehouse

In response, Indiana legislators are examining policy tools used in other states and considering a mix of licensing, transparency and consumer‑protection measures tailored to the state’s market. Among the core ideas under discussion are:

• State licensing for crypto kiosk operators – While kiosk businesses must register at the federal level, advocates argue that a state licensing requirement would give regulators and law enforcement clear visibility into who is operating machines in Indiana and where they are located.[1] AARP Indiana’s legislative director has called state licensing one of the most important steps to protect consumers.[1]
• Location tracking and reporting – Maintaining an up‑to‑date registry of machine locations would allow agencies to respond quickly to emerging fraud hotspots and to coordinate outreach to communities most affected.[1]
• Stronger on‑screen warnings – Lawmakers are weighing requirements that kiosks display prominent fraud alerts, including specific language warning users not to send cryptocurrency to resolve government debts, secure bail, pay utilities, or respond to unsolicited investment pitches.[3][4]
• Transaction limits and waiting periods – Borrowing from Minnesota’s approach, legislators are considering daily caps for new users and cooling‑off periods for large first‑time transactions, which could give victims time to reconsider or consult with family or law enforcement.[3]
• Mandatory cooperation with law enforcement – Proposals include clearer obligations for kiosk operators to respond quickly to subpoenas, preserve transaction data, and provide consumer education materials in stores where machines are installed.[1][3]

Supporters say such measures would not ban crypto kiosks outright but would impose guardrails on an industry that has largely grown faster than consumer protections. Industry representatives, however, have historically argued in other states that excessive restrictions could limit access to digital currencies for legitimate users and harm small businesses that host the machines.[3][4]

AARP and law enforcement push consumer protections

AARP Indiana has made combating crypto ATM fraud a policy priority, working alongside lawmakers to craft legislation and conducting outreach campaigns aimed at older Hoosiers.[1] The group is preparing to advocate not only for kiosk regulation but also for parallel efforts addressing related schemes such as gift card fraud, which often overlaps with crypto‑based scams.[1]

Law enforcement agencies are likewise expanding public‑education efforts. The Fort Wayne Police Department recently released a public service announcement and infographic explaining how virtual currency kiosk scams operate, listing common warning signs, and offering specific steps residents can take to protect themselves and their families.[2] The department urged residents to share the information widely, particularly with seniors, emphasizing that education remains one of the most effective defenses against financial exploitation.[2]

What Hoosiers can do now

While lawmakers debate the details of new regulations, consumer advocates say residents can take immediate steps to reduce their risk:

• Be skeptical of any unsolicited call or message demanding payment via cryptocurrency kiosk, gift card, or wire transfer.[1][2]
• Remember that government agencies, law enforcement, and legitimate utilities do not ask for fines, taxes, or overdue bills to be paid in cryptocurrency.[1][2]
• Pause before acting on urgent requests for money, and verify claims independently using official contact information, not numbers provided in a suspicious call or email.[2][4]
• Talk with older relatives and friends about these scams and encourage them to call a trusted family member or local police if they receive high‑pressure demands for payment.[2]

As Indiana’s General Assembly takes up the issue this session, lawmakers face a balancing act: preserving access to fast‑growing digital financial tools while responding to the very real harm already experienced by Hoosiers at cryptocurrency kiosks across the state.[1][3] The outcome of that debate could help determine whether these machines remain a convenient on‑ramp to the crypto economy or continue to serve as conduits for multimillion‑dollar fraud.