Older people are particularly at risk. A 2024 FBI report found that adults ages 60 and older accounted for over 85 percent of reported fraud losses involving crypto kiosks.
Once the money is sent through these kiosks, the transfer often cannot be reversed — which is precisely why criminals like this form of payment (along with gift cards and gold bars).
How the scam works
Crypto kiosks look like ordinary ATMs and can be found in places like grocery stores, gas stations, laundromats and convenience stores. As of 2024, there were more than 30,000 crypto kiosks nationwide.
Scams involving the kiosks often begin with a phone call or text message from a criminal posing as a bank fraud investigator, law enforcement officer or Social Security official. During the conversation, the criminal typically urges the targeted person to withdraw cash from their bank account, then directs the victim to a specific crypto kiosk to deposit the money into the machine.
Lieutenant Paul Bloom, a detective and crypto expert with the Marion County Sheriff’s Office in Florida, says scammers often tell victims that there’s an imminent threat, similar to what happened to Betesh.
And these criminals are sophisticated, he adds. They spoof numbers, “so people see a local number coming up with their area code,” and sometimes they use the names of real law enforcement officers. “They’ve used my name before,” Bloom says.
Do the store owners who agree to host these kiosks know that they are often used for crimes? In Betesh’s case, the liquor store employees seemed to know something was wrong with the situation. She was so flustered in front of the kiosk that she was shaking and couldn’t figure out how to work the machine. So, she says, ‘I asked the man and the woman behind the counter, ‘Could you please help me? Could you please help me?’ And they both turned their backs on me. They raised their hands up to the ceiling: ‘No, we can’t help you.’ ”
Combating crypto-kiosk crimes
While 24 states have taken some protective action, 17 of them have passed comprehensive legislation to protect consumers from scams that utilize crypto kiosks.
The government affairs team at AARP assisted lawmakers with their efforts in 16 of those states. Françoise Cleveland, government affairs director at AARP, wants fraud warnings placed on crypto kiosks nationwide. AARP is also advocating for daily transaction limits and refunds for fraudulent transactions.
