Criminals have discovered a new way to steal millions of dollars from older Americans. And Indiana lawmakers have the power to stop it.
Cryptocurrency ATMs, also known as “crypto kiosks,” are being installed in convenience stores, gas stations, and retail stores across the country. Although these machines allow users to conduct legitimate cryptocurrency transactions, their lack of regulation compared to traditional financial institutions makes them prime targets for fraud.
According to the FBI, consumers reported losing a total of $246.7 million at cryptocurrency ATMs in 2024, a 31% increase from 2023. Among crimes where the age of the victim was known, 86% of the victims were Americans 60 years of age or older. And that’s just the tip of the iceberg. Many victims do not report being scammed.
These crimes often begin with a phone call or text message claiming an urgent financial problem. Victims are instructed to withdraw large amounts of cash (sometimes tens of thousands of dollars) from their bank accounts and deposit it into a cryptocurrency kiosk. Once money is transferred, it is usually lost forever.
There are over 20,000 cryptocurrency ATMs across the United States, and Indiana is no exception, with hundreds of them across the state. This means Hoosiers remain vulnerable due to a lack of consumer protection. That’s why AARP Indiana is fighting to keep older Hoosiers from losing their savings to criminals.
Indiana lawmakers will have an opportunity to act next year in Congress. Seventeen other states have also enacted laws, and cities are also taking steps to protect consumers. For example, the city of Evansville recently passed an ordinance after law enforcement saw a steady increase in fraud cases related to crypto ATMs.
Older Hoosiers, and frankly all consumers, need stronger protections against this type of fraud. States like Arkansas, Iowa, and Nebraska and cities like Evansville have already set the standard with common-sense safeguards such as clear fraud warnings, up-front customer service contact information, and refunds for exorbitant fees associated with fraudulent transactions.
These measures are effective, but they are not enough. Daily transaction limits must be in place, and receipts with detailed information are required so that consumers and law enforcement can track suspicious activity. There also needs to be a direct communication channel between ATM operators and law enforcement. Because time is of the essence when fraud occurs. And what happens to businesses that ignore these rules? Significant penalties should be applied.
No matter where in the state you live, Hoosiers can rest easy knowing their hard-earned money is safe. No one should have to worry about being tricked into handing over their retirement funds by a scammer hiding behind a screen. These criminals can be very sophisticated and often manipulate even the most knowledgeable individuals.
These dangerous loopholes can be addressed by state leaders, and with thoughtful collaboration, we can ensure that all Hoosiers, especially seniors, are protected from fraud and their savings stay where they belong. AARP Indiana stands ready to help make that future a reality.
Ambre Marr has served as AARP Indiana’s state legislative director for the past nine years. The Indiana Capital Chronicle is part of State Newsroom, a nonprofit news network supported by a coalition of grants and donors as a 501c(3) public charity.
