It’s not an ATM. It’s a Crypto Kiosk – and Possible Red Flag for a Scam

It looks like an ordinary bank ATM. You might find one at your local convenience store, mall, or even a campground. But unlike your bank’s ATM, these “crypto kiosks,” which convert cash into cryptocurrency, have only recently been regulated in Virginia. 

Del. Michelle Lopes Maldonado (D-Manassas), sponsor of House Bill 665 regulating virtual currency kiosks, explained the purpose of this legislation in a recent AARP Virginia webinar. 

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Maldonado referred to an incident last year in southwest Virginia: A grandmother, aided by her daughter, fed $15,000 in cash into a crypto kiosk in response to a fraudulent request. It was only after the fact that they became suspicious of a trick.  

“There are some legitimate uses for the kiosks,” said the delegate, who, along with Sen. Saddam Salim (D-Falls Church), worked with the cryptocurrency kiosk industry to reach a balanced approach to regulation. Virginia’s new crypto kiosk law is scheduled to go into effect on July 1, 2027.

Under the law, crypto machine owners will have to put a hold of 48 hours on any transaction by a new user, so that there is a way to recover the funds before they move on to a digital ledger, or blockchain. Virtual currency kiosk operators must obtain licensing from the State Corporation Commission and take reasonable steps to detect and prevent fraud and money laundering. The bill prohibits operators from accepting transactions above specified daily and monthly limits and establishes a maximum transaction charge of 18 percent of the value of each transaction.

Cryptocurrency is not well understood by the general public, according to Francoise Cleveland, AARP’s government affairs director for financial security, another webinar speaker. In a scam, the target may get an urgent appeal from someone pretending to be a financial institution representative. The scammer will urge you to withdraw money from your bank and deposit the cash in a nearby digital currency machine to make a payment.  

You should remember: No bank or government agency will ask you to make a cryptocurrency payment. 

Based on reports to the FBI, criminals used the machines to steal $257 million nationwide in 2025.  Seventy-six percent of the victims were 60 years or older. 

How can you avoid being targeted by criminals? Francoise Cleveland says: Pause, reflect, protect. If you get an urgent request to act immediately, find a family member or independent person to ask whether it sounds legitimate.  

Maldonado added: “With the new 48-hour hold the legislation provides, you can probably recover funds and fees. Create a record of all your transactions.”

Report scams to local law enforcement and the FBI’s Internet Crime Complaint Center at IC3.gov. The more information they have, the better they can identify patterns, link cases and ultimately catch the criminals.   

The AARP Fraud Watch Network Helpline, 877-908-3360, is a free resource available to all. Call to speak with trained fraud specialists who provide support and guidance on what to do next and how to avoid scams.