Minnesota Bans Cryptocurrency Kiosks Amid Rising Scam Losses
Severity: High (Score: 67.2)
Sources: Feeds2.Feedburner, Bleepingcomputer, www.ic3.gov, www.aarp.org
Published: · Updated:
Keywords: crypto, minnesota, atms, cryptocurrency, kiosks, americans, lost
Severity indicators: ot
Summary
Minnesota has enacted a statewide ban on cryptocurrency kiosks following significant financial losses attributed to scams using these machines. In 2025, Americans lost over $388 million to such scams, with more than half of the victims being individuals over 50. The FBI reported a 58% increase in losses from the previous year, highlighting the urgency of the issue. Lawmakers, supported by AARP volunteers, recognized the need for stronger consumer protections after numerous testimonies from victims. The ban aims to prevent further exploitation of vulnerable populations, particularly older adults, who are disproportionately affected by these scams. Similar legislative actions have occurred in Indiana and Tennessee earlier in 2026. The FBI has warned the public about the increasing sophistication of these scams, which often involve detailed instructions from criminals on how to use the kiosks. Key Points: • Minnesota has banned cryptocurrency kiosks to combat rising scam losses. • In 2025, over $388 million was lost to scams involving crypto ATMs, primarily affecting older adults. • The FBI reported a 58% increase in losses from crypto ATM scams compared to 2024.
Detailed Analysis
**Impact** Cryptocurrency kiosk scams caused over $388 million in losses across the United States in 2025, with more than 13,400 complaints reported to the FBI’s IC3. Individuals over 50 accounted for more than half of these complaints, suffering losses exceeding $302 million. Minnesota experienced significant financial harm, prompting a statewide ban on crypto kiosks, with communities like Faribault reporting over $500,000 in losses. The scams primarily affect older adults and vulnerable populations, leading to financial damage and long-term emotional distress. **Technical Details** Attackers use cryptocurrency kiosks—physical ATM-like devices—to instruct victims to withdraw cash and deposit it via these kiosks, converting funds into cryptocurrency sent to attacker-controlled wallets. The scams involve detailed, step-by-step instructions provided to victims, often including locating kiosks and executing transfers. No specific malware, CVEs, or infrastructure details were reported. The attack vector is social engineering combined with physical kiosk transactions, exploiting the irreversible nature of cryptocurrency transfers. **Recommended Response** Defenders should educate users, especially older adults, to avoid sending money via cryptocurrency kiosks based on unsolicited instructions. Organizations and law enforcement should monitor for reports of crypto kiosk fraud and encourage victims to file complaints with local authorities and the IC3. Users must verify identities of callers demanding payments, avoid scanning unknown QR codes, and retain transaction receipts. No technical patches or IOCs were provided; focus should be on awareness, verification processes, and reporting mechanisms.
Source articles (4)
- Banning Crypto Kiosk Fraud In Minnesota — www.aarp.org · 2026-05-19
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… - PSA260515 2 — www.ic3.gov · 2026-05-19
As a supplement to the Internet Crime Complaint Center ( IC3 ) 2025 Annual Report , the Federal Bureau of Investigation ( FBI ) provides the following data involving cryptocurrency kiosks at the state… - FBI: Americans lost over $388 million to scams using crypto ATMs in 2025 — Bleepingcomputer · 2026-05-19
The FBI says Americans have lost over $388 million last year to scams using cryptocurrency kiosks, also known as crypto ATMs or Bitcoin ATMs. Cryptocurrency kiosks are physical, standalone electronic… - FBI: $388 million lost in crypto ATM scams in 2026 — Feeds2.Feedburner · 2026-05-20
Americans lost more than $388 million to crypto kiosk scams in 2025, with the FBI warning that criminals are increasingly directing victims to transfer funds through these machines. Cryptocurrency kio…
Timeline
- 2025-01-01 — FBI reports significant losses from crypto ATM scams: The FBI revealed that Americans lost over $388 million to scams involving cryptocurrency kiosks in 2025, with a notable increase in complaints.
- 2026-03-01 — Indiana bans cryptocurrency kiosks: Indiana passed legislation to prohibit the use of cryptocurrency kiosks statewide in response to rising scams.
- 2026-04-01 — Tennessee bans cryptocurrency kiosks: Tennessee followed Indiana's lead by enacting a ban on cryptocurrency kiosks to protect consumers from scams.
- 2026-05-05 — Minnesota Governor signs crypto kiosk ban: Governor Tim Walz signed a bipartisan bill into law, banning cryptocurrency kiosks statewide to safeguard consumers.
- 2026-05-19 — FBI warns of increasing crypto ATM scams: The FBI issued a public service announcement about the surge in crypto ATM scams, emphasizing the need for consumer vigilance.