Cryptocurrency Kiosk Scams Are Rising: What Alabamians Need to Know

Cryptocurrency kiosks—machines that look like ATMs—have become a growing source of fraud across Alabama. These machines allow people to buy digital currency with cash, but scammers are increasingly using them to trick victims into sending money that can’t be recovered.

What’s Happening in Alabama

A statewide review by the Alabama Securities Commission (ASC) found that Alabamians lost $6.5 million through cryptocurrency kiosk scams in 2024—about half of all the money deposited into the machines during the study period.

ASC surveyed roughly 600 kiosk users and found that 64% had been victims of fraud, often after being pressured by someone pretending to be a government official, law enforcement, or tech support. More than half of those affected were age 60 or older.

A National Trend

The FBI reports this problem is growing nationwide. In 2025, more than 12,000 complaints were filed about cryptocurrency kiosk scams, with losses exceeding $333 million.

Adults 60 and older accounted for over 85% of reported losses in 2024.

HB 303: Alabama’s New Step Toward Protection

On February 24, 2026, the Alabama House passed HB 303, the Cryptocurrency Kiosk Fraud Prevention Act. The bill now moves to the Alabama Senate for consideration. While not yet law, HB 303 aims to reduce fraud by requiring:

• Daily and monthly limits on kiosk transactions (proposed limits: $1,000/day and $10,000/month)
• Clear fraud warnings displayed on kiosks
• Better fee and exchange‑rate disclosures
• U.S.-based customer service requirements
• Refund mechanisms for certain fraud cases

AARP is supporting this legislation because scam tactics are becoming more convincing and more aggressive.

How These Scams Work

Most fraud cases follow the same pattern:

1. A scammer calls or messages with an urgent warning—claiming your money is at risk, a loved one is in trouble, or your computer has been compromised.
2. They instruct you to withdraw cash immediately.
3. They direct you to a nearby cryptocurrency kiosk and stay on the phone while you deposit the money.
4. Once the cash is converted to cryptocurrency, it’s gone for good.

How You Can Protect Yourself

• If anyone asks you to pay using a cryptocurrency kiosk, it’s a scam.
• Hang up if you get a call demanding immediate payment.
• Verify unexpected claims by contacting the organization directly using a trusted phone number.
• Talk with someone you trust before sending money under pressure.
• Report scams to the local law enforcement, the Alabama Securities Commission, the FBI’s Internet Crime Complaint Center (IC3), or the AARP Fraud Watch Network (aarp.org/fraud).