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Taking Aim at Crypto ATM Fraud in Kentucky

David Lewellen,

AARP

Published March 01, 2026

photo illustration with computer circuitry and the word crypto

Getty Images

Criminals are constantly adapting fraud schemes to use the latest technologies, from artificial intelligence to cryptocurrency.

That’s why AARP Kentucky will host a series of Scam Jam events this year to help Kentuckians stay up-to-date and protect themselves. One increasingly popular tool for scammers are cryptocurrency kiosks, also called crypto ATMs.

The machines, which convert cash into Bitcoin and other digital currencies, can resemble traditional bank ATMs and are located in gas stations, grocery stores and other businesses. The transactions often involve international exchanges, which makes money difficult to trace and recoup.

Criminals will stay on the phone with their victims, directing them “step-by-step [as] they’re putting thousands of dollars into these machines,” says Gary Adkins, a former felony prosecutor for the state of Kentucky who is also AARP Kentucky’s volunteer state president.

The grift often starts with a phone call “to get [people] thinking with their heart and not their brain—to get them excited or afraid,” Adkins says.

Nationwide, Americans reported losing $247 million in crypto ATM-related fraud in 2024 — a 31 percent increase from 2023, FBI data shows. Among the cases where victims’ ages were known, people over 60 accounted for 86 percent of the losses in 2024.

Daniel Roe, AARP Kentucky state advocacy manager, says the organization is pushing for passage of House Bill 380 to regulate the machines.

The upcoming Scam Jams will also highlight criminals’ use of AI, which can be used to impersonate the voice of a family member or friend asking for money. “With AI, it becomes more and more difficult to determine what’s real and what’s not,” says Carla Wallace, 78, a member of AARP Kentucky’s Executive Council.

The fraud prevention events will be held in Elizabethtown, Hopkinsville and Pikeville in 2026. The free events will include speakers from financial institutions, law enforcement and the Better Business Bureau. Lunch will be provided. Go to aarp.org/events/find for details.

“If we can educate the public about frauds and scams, people are better able to spot one,” Adkins says. “And if you can spot a scam, you can stop a scam.”