Indiana Strikes Back: After Hoosiers Lose $125 Million

In 2024, Hoosiers lost over $125 million to scams at cryptocurrency kiosks. These machines, often called Bitcoin ATMs, promise quick access to digital money. But they have become hotspots for fraud. Now, Indiana lawmakers are fighting back with a new bill to protect consumers.

What Are Crypto Kiosks and Why Are They Everywhere?

Crypto kiosks let people buy or sell digital currencies like Bitcoin using cash, credit cards, or debit cards. You find them in gas stations, convenience stores, and grocery shops. They have been around for over 10 years and are growing fast.

Here’s how they work:

• Insert cash or a card.
• Pick your crypto and amount.
• Scan a wallet QR code.
• Get crypto sent to your digital wallet.

Many use them to invest, make online payments, or store money outside banks. No bank account needed. But crypto transactions are irreversible. Once sent, you can’t get it back. This makes kiosks perfect for scammers.

The Hits Indiana Hard

Sergeant Nathan VanCleave from the Evansville Police calls it a “scam-demic.” Scammers use phones, texts, and emails. They create urgency: “Send money now to this kiosk or lose everything!” Victims rush to a kiosk, buy crypto, and send it to the scammer’s wallet. Gone forever.

Tech makes scams worse. Crypto moves fast across borders. VanCleave, an expert in tracing crypto, says scams are “on steroids” thanks to digital money.

Vulnerable people get hit most: seniors, new investors, those without bank savvy. In Indiana alone, losses topped $125 million last year. Nationally, billions vanish yearly to these tricks.

: Indiana’s Plan to Regulate Kiosks

Rep. Wendy McNamara, R-Evansville, wrote HB 1116. The House Financial Institutions Committee heard experts testify on it. The bill targets head-on.

Key changes:

Right now, kiosks have federal rules but little state watch. This bill adds tough oversight.

What Experts and Companies Say

Nine witnesses spoke, including police and kiosk reps. All agreed: change is needed. VanCleave pushed for state rules like 20 other states already have.

Clara Wulfsen from CoinFlip likes 95% of the bill. Her company runs kiosks worldwide. But she wants tweaks to limits and fees.

Michael Geiselhart from Bitcoin Depot called the 3% fee cap an “eviction notice.” Kiosks cost more to run than bank ATMs. Private owners need higher fees to stay in business. Caps could pull machines from Indiana stores.

Still, everyone backs scam prevention. More talks come next week.

Why State Rules Matter for Crypto Growth

Crypto kiosks fill a gap. They serve the unbanked and rural folks. But without rules, scams scare people away. Good regulation builds trust.

Other states like New York and Texas limit fees and require IDs. Indiana could join them. This might slow some kiosks but cut fraud big time.

Broader view: Crypto is booming. Bitcoin hit new highs in 2024. But scams hurt adoption. Smart rules protect users without killing innovation.

How to Spot and Avoid Kiosk Scams

Stay safe with these tips:

1. Never rush. Scammers push urgency.
2. Verify requests. Real companies don’t demand instant crypto.
3. Use known wallets. Don’t send to stranger addresses.
4. Check kiosk fees first. High ones are red flags.
5. Report to police if scammed. Trace tools exist.

Apps like WalletGuard or police hotlines help too.

What’s Next for in Indiana?

HB 1116 heads back to committee. If passed, it sets a model for other states. Hoosiers could see fewer scams and safer kiosks.

Crypto isn’t going away. With $125 million lost, action is urgent. Lawmakers balance business and safety. Watch for updates—this could shape how America buys Bitcoin.

Invest smart. Stay informed. Crypto’s future is bright, but only with strong guards against the dark side.

Related Reading

• Top Crypto Scams to Watch in 2025
• Beginner’s Guide to Bitcoin ATMs
• US State Crypto Regulations Explained