New Alabama Law Tightens Rules on Cryptocurrency Kiosks to Combat Senior Scams

Alabama has enacted a sweeping new law aimed at curbing the surge in cryptocurrency kiosk fraud, particularly scams that target older residents. House Bill 303, formally known as the Cryptocurrency Kiosk Fraud Prevention Act, has now been signed into law and will subject so‑called “crypto ATMs” to stricter transparency, transaction limits, and refund procedures.

Rising tide of crypto kiosk fraud

According to data from the Alabama Securities Commission (ASC), scammers have exploited crypto kiosks to siphon millions of dollars from unsuspecting Alabamians. A statewide survey of six operators in 2024 found that roughly $12.5 million was deposited into these machines, with more than half—about $6.5 million—confirmably lost to fraud.

The ASC found that 64% of those it successfully surveyed reported being victims of fraud, and more than half of the victims were aged 60 or older. Many of the scams were concentrated in central Alabama, where seniors became easy targets for impersonation schemes, fake government fines, and fabricated family emergencies that pressured victims into handing over cash at crypto kiosks.

What the new law does

Sponsored by State Representative Russell Bedsole (R‑Alabaster), HB303 closes regulatory gaps that allowed crypto kiosks to operate with far fewer consumer protections than traditional bank ATMs. Under the new law, operators of cryptocurrency kiosks must implement several key measures:

• Clear scam warnings: Each machine must display prominent, easy‑to‑read fraud warnings and disclosures explaining how cryptocurrency transactions differ from bank deposits and why they can be difficult to reverse.
• Fee and rate transparency: Operators are required to disclose all applicable fees and exchange rates before a transaction is completed, including typical charges that can range from 7% to more than 20% per transaction.
• Transaction limits: The law caps daily transactions at $1,000 and monthly transactions at $10,000 per customer, bringing crypto kiosks more in line with the safeguards already in place for traditional financial institutions.
• Detailed receipts and tracking: Each transaction must generate a detailed receipt containing information that can help victims and law enforcement trace fraudulent transfers.
• Refund pathway: If a transaction is shown to have been fraudulently induced, the operator may be required to refund the customer under certain conditions, providing a rare opportunity for recovery in an environment where funds are often considered lost.
• Customer service and law‑enforcement contacts: Operators must maintain a U.S.‑based customer service line and provide direct contact information for law enforcement, improving accountability and response times.
• Separation from bank ATMs: The bill prohibits crypto kiosks from being installed inside bank or credit union ATM lobbies, where victims have reported believing they were dealing with a federally insured institution.

Impact on seniors and vulnerable populations

Advocacy groups such as AARP Alabama have welcomed the legislation, emphasizing that fraud is one of the fastest‑growing crimes in the state and can be especially devastating for older adults. AARP Alabama released a statement thanking lawmakers and Governor Kay Ivey for making HB303 law, noting that the new guardrails will help protect people without shutting down innovation in the cryptocurrency space.

“Fraud is one of the fastest‑growing crimes in Alabama, and it causes real harm to real people every day,” said AARP Alabama in a public statement. “These are practical, commonsense safeguards that do not ban innovation, but they do protect people.”

A broader regulatory trend

Alabama now joins at least 18 other states that have enacted similar protections for consumers using crypto kiosks. The ASC’s January 2026 press release stressed that criminal actors are increasingly harnessing artificial intelligence and online tools to amplify their reach, making it more urgent for states to impose clear rules.

National FBI data shows that, between January and November 2025, there were more than 12,000 crypto kiosk fraud complaints nationwide, resulting in losses exceeding $333.5 million. Lawmakers and regulators in Alabama argue that HB303 is a critical step in aligning consumer protections with the realities of modern digital fraud.

What residents should know

State officials urge consumers to treat any demand to send money via cryptocurrency as a red flag. Common warning signs include callers claiming to be from the IRS, utility companies, law enforcement, or a victim’s grandchild, pressuring them to deposit cash at a crypto kiosk to avoid arrest, service disconnection, or harm to a loved one.

Residents who suspect fraud or have already lost money through a crypto kiosk are encouraged to contact the Alabama Securities Commission and local law enforcement immediately. Authorities also recommend that older adults discuss the existence of such scams with family members and designate a trusted contact who can review unsolicited requests for money.

With HB303 now in effect, Alabama’s regulatory framework for cryptocurrency kiosks will be more closely aligned with the protections that already exist for traditional banking, creating a safer environment for consumers while holding operators accountable for the misuse of their technology.