Full Breakdown
U.S. States and Congress Move to Tame Crypto ATM Fraud Amid Senior Targeting
6/12/2026, 1:16:06 PM
Surge in Crypto-ATM Scams Threatens Seniors
Fraud linked to cryptocurrency kiosks has risen sharply. FBI data show $389 million in losses in 2025—a 58 % jump from the prior year—with more than half of victims aged 60 +. North Carolina alone recorded over 4,300 fraud complaints in 2025, and nationwide complaints exceeded 13,400, according to the Internet Crime Complaint Center. Scammers impersonate government or law-enforcement officials and pressure victims to transfer cash through ATMs that convert it to untraceable crypto.
Legislative Responses Across the Nation
- North Carolina: House Bill 920 subjects kiosk operators to the Money Transmitters Act, mandates licensing, fraud warnings, receipts, live customer service, a 30-day refund window, a $2,000 daily limit for new users and $5,000 for existing users, and raises the fee cap to 14 %. The bill passed the House unanimously and moves to the Senate.
- Federal Level: The bipartisan Stop Crypto ATM Scams Act proposes $2,000 daily limits for new customers, $10,000 total deposits in the first 14 days, $7,500 daily limits for existing users, AML programs, mandatory scam warnings, receipt issuance, and transparent fee disclosures.
- State Bans: Delaware and New Jersey enacted outright bans on crypto ATMs, citing fraud risks; Delaware also prohibits fiat-to-crypto exchanges that mimic ATMs. Earlier bans include Indiana, Tennessee, and Minnesota, with additional local bans in California and Massachusetts.
Data & Statistics
- $333 million lost to crypto-ATM scams in 2025 (FBI).
- Seniors (60 +) accounted for >85 % of those losses.
- 30,000 crypto ATMs operate nationwide in gas stations, convenience stores, and shopping centers.
- Fee structures range from 3 % (proposed federal cap) to 20-30 % charged by operators.
- Bitcoin Depot’s Q1 2026 revenue fell 49 % year-over-year, reflecting industry contraction.
Official Statements & Responses
Rep. Neal Jackson (R-Moore) highlighted seniors as primary targets and framed the bill as a necessary regulatory step. Rep. Tim Longest (D-Wake) argued the fee cap should be 3 % and limits tighter. Sen. Paul Moriarty (D-NJ) called crypto ATMs “high-tech machines that facilitate fraud.” Rep. María Elvira Salazar (R-FL) stressed the duty to protect retirees, while Rep. Sean Casten (D-IL) called the machines “a quick and easy way to prey on seniors.” Rep. Cindy Romer (D-DE) described ATMs as “a means of extorting cash.” ATM Industry Association director David N. Tente noted that cash dispensed by kiosks does not belong to operators, complicating refunds.
Criticism & Opposition
CoinFlip’s counsel Larry Lipka contended the overall scam rate is under 1 % and advocated for uniform compliance measures rather than bans, offering full refunds to victims. Industry groups warned that high fee caps and transaction limits could push operators out of business, reducing consumer choice.
On-the-Ground Report
Brittany Lee-Foster, 39, recounted a scam where a fake sheriff’s deputy directed her to deposit $1,000 into a Bitcoin Depot ATM, leaving her “sitting in the jail parking lot…crying” after the call ended.
Conflicting Reports & Gaps
Fee caps differ: NC’s 14 % versus proposed federal 3 % and other states’ 15 % caps. Transaction limits vary widely, from $1,000 daily (California) to $7,500 (federal proposal). No source provides post-ban data on fraud reduction, leaving effectiveness uncertain.
Verbatim Quotes
- “More than half of victims are over age 60. Seniors lost $257 million last year to these scams,” — Rep. Neal Jackson, R-Moore
- “but if you’re going to go do it in person like this, I think there should be some more guardrails.” — Rep. Tim Longest, D-Wake
- “no legitimate purpose — none.” — Sen. Paul Moriarty, D-NJ
- “All I could do was sit there in the jail parking lot and cry,” — Brittany Lee-Foster, victim
- “Crypto ATMs already resemble other fringe financial products where profitability depended heavily on consumer confusion, financial desperation, or fraud exposure rather than broad-based financial utility,” — Tonantzin Carmona, Brookings Fellow
What’s Next
North Carolina’s bill awaits Senate approval; the Stop Crypto ATM Scams Act is pending House and Senate consideration. Delaware, New Jersey, and other states continue to enforce bans, while industry players navigate bankruptcies and shrinking revenues. Ongoing monitoring will determine whether regulatory caps or outright prohibitions more effectively curb senior-targeted fraud.
