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Banning Crypto Kiosk Fraud in Minnesota

Minnesota lawmakers take bipartisan action to stop crypto kiosk scams targeting older adults

AARP

Scammers’ favorite tool for stealing victims’ hard-earned money, cryptocurrency kiosks, have been banned in Minnesota. During the 2026 legislative session, Minnesota lawmakers passed a bipartisan bill prohibiting cryptocurrency kiosks statewide. Governor Tim Walz signed the bill into law on May 5, marking a major step forward in protecting consumers from a form of fraud that has caused massive financial losses across the state—especially for older adults who are losing the most money to these scams.

While many Minnesotans may not even realize they’ve seen one of these machines, cryptocurrency kiosks have increasingly been used by criminals to drain victims’ savings, often in a matter of minutes.

What to Know About Cryptocurrency Kiosks

Cryptocurrency kiosks—often called crypto ATMs—look like traditional bank ATMs, but they operate very differently. Scammers increasingly use these machines to pressure victims into depositing cash that is quickly converted to cryptocurrency and irreversibly sent to the scammer.

Learn how these scams work and why criminals rely on these machines.]

Cryptocurrency kiosk scams rob victims and communities of more than just their money. Victims often experience fear, stress, and a lasting loss of confidence long after the money is gone.

During testimony at the State Capitol, Sister Agnes Foley of St. Paul shared how being targeted in a cryptocurrency kiosk scam changed her daily routines:

“I don’t feel safe yet. I turn off my computer each time I am using it, even for a short time.”

Stories like hers helped lawmakers understand the urgency of taking stronger action.

The Power of Volunteer Voices

AARP Minnesota volunteer Jim Glass (left, in red vest) joins fellow volunteers in the Minnesota House gallery during a hearing on cryptocurrency kiosks.

AARP volunteers played a critical role in passing the ban. Former bank regulator and AARP Minnesota volunteer Jim Glass testified before lawmakers, sharing what he learned about the scale of losses tied to cryptocurrency kiosk scams and why stronger protections were necessary. “When I learned about the massive and growing losses through cryptocurrency kiosk scams, I knew I had to get involved to help protect Minnesotans.”

Other AARP volunteers attended hearings, contacted their legislators, and showed up at the Capitol throughout the session, demonstrating the impact that informed, engaged voices can have in driving meaningful change and protecting Minnesotans from fraud.

Taking Action at the Capitol

Older adults lose significantly more money to cryptocurrency kiosk scams than any other age group. Recognizing the ongoing harm, AARP Minnesota stepped up to lead efforts at the Minnesota State Capitol prohibit cryptocurrency kiosks statewide.

Law enforcement leaders from across the state joined AARP Minnesota in urging lawmakers to act, sharing firsthand accounts of how widespread and costly these scams have become in their communities. Law enforcement leaders from communities across the state, including Apple Valley, Benton County, Elk River, Forest Lake, Minneapolis, Ramsey, Sartell, St. Cloud, and others areas described the challenges of stopping scams and recovering stolen funds.

Faribault Police Chief John Sherwin testified that in his community of fewer than 25,000 people his department has investigated more than $500,000 in reported losses tied to cryptocurrency kiosks. Detective Lynn Lawrence of the Woodbury Police Department told lawmakers, “Our seniors, vulnerable adults, and hard‑working families are being drained of their savings.”

AARP Minnesota Volunteer State President Courtney Burton, State Rep. Bernie Perryman, and St. Cloud Police Sgt. Jake Lanz discuss crypto kiosk scams, law enforcement challenges, and why Minnesota lawmakers are weighing new restrictions.

In a closely divided Legislature, the bill received strong bipartisan support. Representative Erin Koegel, co‑chair of the House Commerce Finance and Policy Committee, authored the bill in the House and was joined by Representative Bernie Perryman to present the bill to the committee. Senator Amanda Hemmingsen‑Jaeger sponsored the legislation in the Senate.

Lawmakers on both sides of the aisle added their support for the bill throughout the process. Co‑chair Tim O’Driscoll told his committee, “This is how bills need to be done,” noting that local law enforcement in his district urged his support for the bill. Representative Harry Niska shared a personal story on the House floor about a loved one who fell victim to a cryptocurrency kiosk scam and said these machines are “used for really one of two purposes: crime through money laundering or crime through being the backend of some sort of a scam.” [ET1] He and Senator Hemmingsen-Jaeger authored the 2024 bill to create the state’s first set of laws attempting to stop cryptocurrency kiosk scams.

The bill ultimately passed both chambers with broad bipartisan votes and was signed into law by Governor Tim Walz on May 5, 2026. Starting August 1, 2026, cryptocurrency kiosks are prohibited in Minnesota.

Improving Consumer Protections in State Law

Minnesota was the first state to enact laws regulating kiosks in 2024, requiring warning signs, daily transaction limits, and refunds for new customers. However, scammers quickly found ways to work around those safeguards, and fraud through these machines persisted at alarming levels. With losses continuing to mount, lawmakers agreed it was time for stronger action. Minnesota joins Indiana and Tennessee as the third state to prohibit cryptocurrency kiosks.

In 2025 alone, cryptocurrency kiosks were used in scams that led to more than $389 million in reported losses nationwide. Federal data show that adults age 60 and older accounted for 86 percent of reported losses in cases where a victim’s age was known. As losses have continued to rise, states across the country have moved to regulate or ban these machines.