At any given time, the Manheim Township Police Department is investigating dozens of scams linked to cryptocurrency kiosks. A scammer might claim to be from Apple Pay, Microsoft, or the Social Security Administration and say a problem with the victim’s accounts requires urgent action. There’s usually some sort of scary accusation involved — that your account’s involved in money laundering, or that illegal activity, like child pornography, has been detected. Typically, victims are told to withdraw cash from their accounts and deposit it in a crypto kiosk, sometimes called a crypto ATM, and frequently located in malls, gas stations, markets and other outlets.
Scams like these, in which victims have lost life savings, are flourishing across the state and country and disproportionately affecting older Americans. Unlike traditional bank ATMs, crypto ATMs are largely unregulated, says Teresa Osborne, state advocacy director for AARP Pennsylvania. It’s easy for criminals to move large amounts of money. And once the money is gone, it can be difficult to trace.
“Pennsylvanians are losing their hard-earned money, and one of the ways they’re losing it is these criminals that convince folks to go to a cryptocurrency kiosk in their local mall and put money into it,” she says. The FBI says nationally in 2024, $246.7 million in losses from frauds and scams involving crypto kiosks were reported. In Pennsylvania, older adults reported $151.1 million in all fraud losses in 2024, up from $77 million in 2021, an increase of 96 percent. Despite the sophistication of these crimes, including an increasing use of artificial intelligence and high tech, victims often blame themselves.
A 74-year-old widowed, retired teacher from Douglassville was a victim of cryptocurrency fraud. The retired teacher, who asked that their name not be used to protect their privacy, lost $16,000 in savings last fall after receiving a phone call saying their bank accounts had been compromised. A man who said he was from the Social Security Administration persuaded the retired teacher to withdraw almost all of their savings and deposit it in a Bitcoin ATM, promising that someone would bring a certified check to their home that night. “I should have known,” the retired teacher says.
“I should have hung up right away.” The money — their only savings to supplement the pension and Social Security payments they live on — had disappeared. The FTC says older adults most frequently report losing money to criminals pretending to be government, bank or tech officials. “Now, instead of asking the victim to get gift cards, the scammers are saying, ‘Go get cryptocurrency,’” says Mary Bach, chair of the AARP Pennsylvania Consumer Issues Task Force. AARP has added information about cryptocurrency and crypto ATMs to its fraud presentations. Many states are passing AARP-supported laws that limit crypto ATM transactions, require users to be informed of the fraud risk, and mandate refunds of qualifying payments. Osborne hopes similar legislation will be enacted in Pennsylvania. “We’re advocating for common-sense safeguards — like providing a paper receipt for every transaction—to help prevent Pennsylvanians from being exploited,” she says.
At any time, law enforcement is investigating dozens of scams linked to cryptocurrency kiosks, where criminals pose as legitimate officials or service providers to pressure victims into cash withdrawals. Reports show scammers may claim to be from Apple Pay, Microsoft, or the Social Security Administration, insisting urgent action is needed. Victims are often told to deposit cash into a crypto kiosk, commonly found in malls, gas stations, and markets, creating opportunities for rapid, untraceable transfers. The burden falls heavily on older Americans, with scams of this nature expanding across the state and country. Crypto ATMs are largely unregulated compared with traditional bank ATMs, complicating efforts to trace losses once funds are moved. Authorities warn that these schemes rely on fear and deception to extract life savings, prompting calls for safeguards such as clearer transaction receipts and tighter regulation.
National figures reflect the severity: the FBI reports $246.7 million in losses from crypto kiosk fraud nationwide in 2024. In Pennsylvania, older adults reported $151.1 million in all fraud losses in 2024, up from $77 million in 2021, a 96% increase. Although perpetrators increasingly use artificial intelligence and other high-tech methods, victims often blame themselves for falling for the ruse. A 74-year-old widowed retiree from Douglassville became a victim, losing $16,000 after a phone claim that bank accounts were compromised led to withdrawal and deposit into a Bitcoin ATM, with assurances someone would deliver a certified check that night.
The FTC notes that older adults most often report losses to scammers posing as government, bank, or tech officials. “Now, instead of asking the victim to get gift cards, the scammers are saying, ‘Go get cryptocurrency,’” says Mary Bach, chair of the AARP Pennsylvania Consumer Issues Task Force. AARP has integrated cryptocurrency and crypto ATM information into fraud presentations, and many states are pursuing laws to limit crypto ATM transactions, inform users of risks, and require refunds for qualifying payments. Osborne emphasizes common-sense safeguards, such as providing a paper receipt for every transaction, to help prevent Pennsylvanians from being exploited.
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