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CRITICAL THREAT · Financial Fraud

Consumer Alert: Cryptocurrency Kiosk Fraud and Citywide Bans

The City of Albuquerque has enacted a citywide ban on cryptocurrency kiosks (Bitcoin ATMs) due to high rates of fraud, with local officials estimating that 90% of transactions at these machines are linked to illicit activity. This action follows a national trend of rising financial losses associated with crypto kiosks, which are frequently used by scammers to facilitate irreversible, anonymous money transfers.

10/19/2026Cryptocurrency Kiosks (Bitcoin ATMs)Cashier-facilitated virtual currency transactions

Warning signs

  • Unsolicited calls or messages from individuals claiming to be government officials, police, or tech support.
  • Urgent demands to withdraw cash from your bank account to 'protect' your funds or pay a fee.
  • Instructions to deposit cash into a cryptocurrency kiosk to resolve a legal issue, debt, or account hack.
  • Threats of arrest, jail time, or claims that your identity has been stolen if you do not act immediately.
  • Requests to send cryptocurrency to a specific wallet address provided by a stranger.

What you should do

  • Never deposit cash into a cryptocurrency kiosk at the direction of someone you do not know or trust.
  • Be aware that government agencies will never demand payment via cryptocurrency or Bitcoin ATMs.
  • If you suspect a scam, hang up immediately and contact your local police department or the New Mexico Attorney General’s Office.
  • Report the incident to the FBI’s Internet Crime Complaint Center (IC3) if you have been a victim of a kiosk-related scam.
  • Understand that cryptocurrency transactions are generally irreversible and losses are rarely recoverable.
Cryptocurrency kiosks, or 'Bitcoin ATMs,' have become a primary tool for scammers who impersonate government officials, law enforcement, or trusted figures to coerce victims into withdrawing cash and depositing it into these machines. Because these transactions are rapid and irreversible, funds are often impossible to recover once sent. In 2025, the FBI reported nearly 13,500 complaints related to crypto kiosks nationwide, with losses totaling nearly $389 million—a 58% increase from the previous year. In response to these risks, the Albuquerque City Council passed an ordinance in September 2026 prohibiting the operation of these kiosks within city limits, requiring existing operators to remove them. Similar legislative efforts to restrict or ban these machines are being explored in other U.S. jurisdictions to protect consumers from exploitation.

Sources

https://www.krqe.com/news/national/crypto-kiosks-linked-to-56-8m-in-losses-for-texans-lawmakers-examine-scamshttps://www.atmmarketplace.com/news/ohio-law-enforcement-returns-15k-to-bitcoin-atm-scam-victim/https://zerohash.zendesk.com/hc/en-us/articles/39308536736157-zerohash-Cryptocurrency-Kiosk-Disclosures-and-Refund-Policies-New-Mexicohttps://www.kob.com/wp-content/uploads/2026/09/O-49.pdfhttps://www.krqe.com/news/albuquerque-metro/albuquerque-city-council-bans-crypto-atms-in-city-limits-citing-use-tied-to-crimehttps://www.youtube.com/watch?v=1F2yH894q2o