The city of San Antonio in the US state of Texas has adopted a regulation that makes it mandatory for all crypto kiosks throughout the city to have fraud warning signs. The decision was taken after police recorded 660 fraud reports and losses of approximately $39 million between January 2024 and April 2026.
The fraud method proceeds in a similar way
The San Antonio Police Department announced that a similar scenario was followed in the cases. Callers identify themselves as police, court officials, government agency employees, or representatives of service providers such as electricity and water. Then, they force the target people to send money by fabricating an emergency situation such as a detention order, unpaid fine or overdue bill.
It was stated that these people asked the victims to deposit the cash into a Bitcoin ATM, claiming that the payment would thus solve the problem. The police noted that the fraudsters kept the victims on the phone throughout the transaction, thus eliminating the possibility of getting support from their relatives, store employees or the emergency help line.
The San Antonio Police Department emphasizes that no government agency or utility company will request payments from citizens via Bitcoin ATM.
Bilingual warning signs will be hung at 193 points
The city government identified 193 crypto kiosk points in San Antonio. That number is higher than similar spots in Dallas, Fort Worth and Austin. According to the new rule, operators will have to display warning signs in English and Spanish on every device.
The signs will need to be color-coded, prepared in 18-point font, and placed in a way that can be directly read by the user at the device. The texts will list common crypto scam methods and advise anyone asked to send money under duress to call 911.
Mini dictionary: Crypto kiosk refers to physical devices through which users can buy and sell crypto assets in exchange for cash. These devices, unlike classical bank ATMs, are used for blockchain-based transfer transactions.
The San Antonio Police Department will be responsible for enforcing compliance and preparing and distributing signs. Companies that do not display warning signs may be fined between $100 and $500 per day for each violation. The regulation will come into force on July 1.
| Title | Data |
|---|---|
| Number of notices | 660 |
| Total loss | $39 million |
| crypto kiosk point | 193 |
| Effective date | July 1 |
Tougher steps are being discussed across Texas
The move in San Antonio comes as part of a broader debate taking place across Texas. Smith County Sheriff Larry Smith met with lawmakers during the week to call for a complete statewide ban on these machines. Smith publicly called for the ban in May after an elderly woman lost $13,000 in a scam run from a Georgia prison.
State Senator Bryan Hughes’ office, House members Cole Hefner and Daniel Alders, and officials from the Texas Financial Crimes Intelligence Center attended the meeting. The information that there is a crypto ATM ban at the state level in Indiana, Tennessee and Minnesota was also brought up at the meeting.
US Secret Service analyst Laura Bravo states that crypto transfers move faster than traditional money movements, and once assets reach an exchange abroad, it becomes much more difficult to get them back.
Bravo also said crypto ATMs leave victims alone by eliminating the human contact that a bank teller can provide. It was stated that this situation increased the control of fraudsters and made it easier for victims to follow the instructions on the phone without questioning.
