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Governor Rhoden Signs Bill to Protect South Dakotans from Virtual Currency Kiosk Fraud

AARP South Dakota-backed bill adds safeguards to virtual currency kiosks to combat fraud targeting older adults.

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Updated March 12, 2026

Published March 05, 2026

/ Updated March 12, 2026

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Fraud protections for South Dakotans are coming soon, as Governor Larry Rhoden signed Senate Bill 98 on March 11. The South Dakota Legislature approved the bill during the 2026 legislative session. This new measure is aimed at protecting consumers - particularly older adults - from scams involving virtual currency kiosks, commonly known as cryptocurrency kiosks.

Fraud targeting older Americans continues to escalate, with criminals stealing an estimated $246.7 million each year through schemes involving virtual currency kiosks. These machines—often located in grocery stores, gas stations, convenience stores, bars, and restaurants—have become a growing target for scammers who trick victims into converting large cash withdrawals into cryptocurrency that is then sent directly to criminals.

SB 98 adds multiple consumer protection measures, including:

Licensing requirements for virtual currency kiosks in South Dakota
Clear disclosure of fees
Daily transaction limits
Posted fraud warnings
Refund requirements when fraud is detected
Receipts with key transaction details to support law enforcement investigations

“This AARP South Dakota-supported bill will add safeguards around virtual currency kiosks,” said Erik Nelson, State Advocacy Director for AARP South Dakota. “Criminals are using virtual currency kiosks to steal hundreds of millions of dollars from Americans each year through fraudulent purchase schemes. We’re grateful to the legislature, and to dozens of partners across the state who came together to advocate for these important protections.”

According to Jeremy Wellnitz, Chief of Police in Clark, South Dakota, these scams often pressure victims to withdraw cash and deposit it directly into a virtual currency kiosk, which instantly transfers funds to criminals.

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“It’s unfortunate that this type of crime is on the rise and, typically, targets older adults,” Chief Wellnitz said. “The goal of this legislation is to implement safeguards to hopefully prevent someone from depositing their hard-earned money because local law enforcement has limited tools to intervene once cash enters a kiosk. Our goal is to protect South Dakotans from crime, and this bill is a valuable tool to help us do that.”

Senator Steve Kolbeck, who represents District 2 (Minnehaha County), served as a prime sponsor of SB 98.

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“This bill is important because there are a growing number of virtual currency kiosks located in the state, and they are largely unregulated and currently lack fraud protections,” said Senator Kolbeck. “It’s important to note that this bill does not prevent virtual currency kiosk operators from placing these kiosks in the state, nor will it prevent a consumer from engaging in lawful virtual currency transactions. What it will do is help raise awareness of fraud that targets South Dakotans using these kiosks. I’m proud that our legislature passed this bill to curb criminal behavior and better protect the people of our state.”