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New Protections for Alabamians: The Cryptocurrency Kiosk Fraud Prevention Act Is Now in Effect

Jamie Harding,

AARP Alabama

A cryptocurrency ATM stands in a convenience store aisle surrounded by packaged goods

AARP

As of October 1, 2026, Alabama consumers have new protections against one of the fastest-growing forms of fraud in the country. The Cryptocurrency Kiosk Fraud Prevention Act, supported by AARP Alabama and enacted earlier this year by the Alabama Legislature, is now officially in effect.

This new law is an important step toward protecting Alabamians, especially older adults, from criminals who use cryptocurrency kiosks, often called "crypto ATMs," to steal hard-earned savings. AARP Alabama advocated for the legislation because fraud involving these machines has grown rapidly, leaving victims with devastating financial losses and little opportunity to recover their money.

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Why AARP Supported This Law

Fraudsters increasingly direct victims to deposit cash into cryptocurrency kiosks under false pretenses. Scammers frequently impersonate government agencies, banks, utility companies, technical support representatives, or even family members in distress. Once money is deposited and converted to cryptocurrency, the transaction is often immediate and irreversible.

AARP Alabama supported the Cryptocurrency Kiosk Fraud Prevention Act because older adults are disproportionately affected by fraud schemes. The Alabama Securities Commission reports that Alabamians have already lost millions of dollars to crypto kiosk scams, while national data show complaints and losses continuing to rise.

As AARP Alabama State Director Candi Williams noted during the legislative process, older Alabamians should not have to worry about criminals stealing the retirement savings they spent decades building. The new law establishes commonsense safeguards to help prevent fraud and reduce losses when scams occur.

What the New Law Does

The Cryptocurrency Kiosk Fraud Prevention Act creates stronger consumer protections for people using cryptocurrency kiosks in Alabama. Among its key provisions:

Refunds for Fraud Victims
If a new customer is fraudulently induced into making a cryptocurrency kiosk transaction, the kiosk operator must provide a full refund of the transaction amount and any fees charged. Existing customers may be eligible for a refund of one-half of the transaction value, plus all fees, if they follow the reporting requirements established under the law.
Transaction Limits
To reduce major financial losses, new users are limited to $1,000 in cryptocurrency kiosk transactions per day and $10,000 per month.
Enhanced Consumer Warnings
Operators must display warnings and information designed to help consumers recognize potential scams before completing a transaction. Machines must prompt users with questions that may alert them to suspicious activity.
Greater Transparency
Consumers must be shown all fees, exchange rates, and transaction details before completing a transaction. Operators must also provide receipts containing important information that may assist consumers and law enforcement if fraud occurs.
U.S.-Based Customer Service
The law requires cryptocurrency kiosk operators to maintain a United States-based customer service line and direct communication channels for law enforcement.

The Scope of the Problem

The data behind this legislation are alarming.

Recent federal data show the problem escalating rapidly. The FBI reported more than 13,400 cryptocurrency kiosk-related complaints during 2025, with reported losses exceeding $388 million, a 58% increase in losses from the previous year. More than half of those complaints involved people over age 50, who accounted for over $302 million in reported losses.

The Federal Trade Commission has also reported a dramatic increase in cryptocurrency ATM scam losses, noting that reported losses increased 1,000% between 2020 and 2023.

Red Flags of Cryptocurrency Scams

Consumers should be cautious whenever someone asks them to move money using cryptocurrency. According to federal regulators and fraud experts, common warning signs include:

Someone claiming to be from a government agency, your bank, a utility company, or technical support contacts you unexpectedly.
You're told your money, identity, or accounts are in immediate danger and must be protected right away.
Someone directs you to withdraw cash from your bank and deposit it into a cryptocurrency kiosk.
You're instructed to scan a QR code or send cryptocurrency to a wallet address provided by someoneI else.
You're pressured to act quickly and discouraged from speaking with family members, financial institutions, or law enforcement.
You're told to pay bills, fines, taxes, or fees using cryptocurrency, gift cards, or other unusual payment methods. Legitimate businesses and government agencies do not demand payment this way.

The Alabama Securities Commission offers one of the simplest warnings: if someone is directing you to deposit money into a crypto ATM, you are likely being scammed.

Fraud is Not the Victim’s Fault

Criminals use fear, urgency, and sophisticated tactics to pressure people into making decisions they would not otherwise make. The Cryptocurrency Kiosk Fraud Prevention Act will not eliminate fraud entirely, but it provides meaningful protections that can help prevent scams and limit financial losses when they occur.

AARP Alabama is proud to have supported this legislation and will continue working with lawmakers, regulators, and community partners to protect consumers from financial exploitation. If you suspect fraud, report it immediately to local law enforcement, the Alabama Securities Commission, and the kiosk operator. Acting quickly may improve your chances of recovering lost funds under the new law.

Together, we can make Alabama a safer place for all of us and help stop criminals from stealing the savings that Alabamians have worked a lifetime to earn.

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