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Cracking Down on Crypto ATM Fraud

A new cryptocurrency kiosk law sets a daily transaction limit of $1,000 per person, requires paper receipts and mandates that operators provide refunds in fraud cases.

David Lewellen,

AARP

Published July 01, 2026

photo illustration with computer circuitry and the word crypto

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In March 2025, when a message popped up on Beth Sewall’s computer screen warning of a security breach, she quickly called the number listed for help.

The man on the other end of the line told her that a payment from her account to a Chinese-based porn site was pending. He told Sewall that to prevent the loss, she needed to withdraw that amount in cash from her credit union and put it into a cryptocurrency machine at a nearby gas station in Appleton.

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She had to act quickly, he said, before businesses opened for the day in China and the pending payment went through. So, she did.

“Hindsight, there were all kinds of red flags,” says Sewall, 63, of Combined Locks, southwest of Green Bay.

Earlier this year, Sewall recounted her experience as she testified before state lawmakers in support of a new Wisconsin law to regulate cryptocurrency kiosks, also known as crypto ATMs. The law, which took effect in April, imposes a daily transaction limit of $1,000 per person on the machines. It also requires operators to provide paper receipts and to issue full refunds to proven fraud victims, among other protections.

Crypto ATMs, which convert cash into digital currency, are found in gas stations, grocery stores and other businesses. They’re a popular tool for criminals looking to steal money since transactions often involve overseas exchanges, making money hard to trace and recoup.

The machines may look like traditional bank ATMs, but they’re not, notes Erin Fabrizius, AARP Wisconsin’s associate state director of advocacy. “Scammers can direct a victim under emotional duress to a kiosk,” Fabrizius says. “The victim puts a large amount of U.S. dollars in, and it’s out of the country in a matter of minutes.”

Bill sponsor state Rep. Patrick Snyder (R-Weston) says he was astonished at how much money criminals were stealing from older Wisconsinites. “We wanted to make it a very tough bill,” he says.

Scott Simons, a detective with the Greenfield Police Department in suburban Milwaukee, also testified in support of the bill. He says that a new requirement for kiosk users to show a photo ID will prevent criminals from getting around the daily transaction limits. Scammers have often given victims different phone numbers to use when logging into a machine, making it look like they’re different individuals. Requiring IDs will better identify people and is “going to save victims a lot of money,” Simon notes.

At least 30 states have passed laws to regulate crypto ATMs, according to AARP research. Minnesota, Indiana and Tennessee have banned the machines outright.