At first glance it looks like an ordinary ATM but what is happening is making them a crime scene, full of scams that can potentially steal the savings of Americans.
Now, Stillwater, Minnesota city leaders are sharing why they put a ban crypto kiosk ATM's amid escalating fraud reports. These ATM's are commonly found in grocery and liquor stores, and were linked to over $100,000 in fraud in Stillwater just last year.
The city's mayor, Ted Kozlowski, told WCCO's Adam and Jordana that the machines only allow users to deposit cash, making them a primary tool for scammers.
"One of the biggest complaints came from our gas station in downtown Stillwater, and the gentleman that was working there that day saw a woman that just kept depositing money, and she didn't seem OK," Kozlowski explains. "And so he called the police and our officers showed up and they basically had to get between her and the machine to stop her from putting in money."
Kozlowski says the funds deposited are reportedly almost impossible to recover, and that he hopes state legislators will consider banning them outright.
But Stillwater already became the first in the state to ban them back in April and Kozlowski says these cash-deposit-only machines can charge 20-30% commissions.
"You know, if somebody puts $10,000 in, we can maybe recover about half of that at best, right? So it's very, very hard to recover the funds, which again is why these things make no sense," He adds.
Kozlowski says even local police struggled to stop one victim mid-scam, and that he wants them removed from as many retailers as possible.
There are a few attorneys general taking action around the country, including in Iowa, North Carolina, and Washington D.C. Lawsuits claim crypto ATM operators do not have adequate anti-fraud measures in place, and that is creating an environment for illicit activity.
But it is also being looked at all across the U.S. Those scams are also targeting elderly and vulnerable individuals who are less familiar with cryptocurrency and ripe for these scam efforts.