Coral Springs residents lose $321,053 to cryptocurrency ATM scams as police seek a complete ban on the machines
Coral Springs, Florida – A growing number of scams involving cryptocurrency kiosks has cost Coral Springs residents more than $321,000 since 2024, according to a presentation prepared for the city commission.
Now, Coral Springs police are asking city commissioners to consider taking a stronger step. Police are expected to discuss a possible ban on cryptocurrency kiosks during a commission workshop on Wednesday.
The machines can look much like ordinary bank ATMs, but they work differently. Instead of dispensing cash or handling traditional banking transactions, cryptocurrency kiosks allow users to put cash into a machine and convert it into digital currency. That cryptocurrency can then be sent to a digital wallet connected to a QR code.
According to the police presentation, scammers have been using those machines as part of a familiar scheme that often targets older residents.
The scam typically begins with a phone call or text message. The person on the other end claims to be a law enforcement officer, federal agent or IRS representative. The victim may be told that a warrant has been issued for their arrest or that their bank account is in danger.
The caller then offers a supposed solution.
Victims are instructed to remain on the phone, keep the situation secret and travel to a cryptocurrency kiosk. Once there, the scammer walks them through the transaction, telling them how to insert cash and scan a QR code displayed on the screen.
But the threat is fake. The money is not being used to resolve a legal problem or protect a bank account. Instead, it is sent to a cryptocurrency wallet controlled by the scammer.
Since cryptocurrency transactions generally cannot be reversed in the same way as credit card payments, recovering the money can be extremely difficult. The presentation says that once the cryptocurrency moves, a bank cannot simply recall it and a card company cannot reverse the transaction.
Police may be able to follow the movement of cryptocurrency between digital wallets through the public ledger used to record transactions. However, tracing the transfers does not necessarily reveal the identity or physical location of the person who ultimately controls the money.
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The number of reported cases in Coral Springs has also raised concerns about how frequently the machines are being used in scams.
The presentation identifies 26 cases dating from 2024 into 2026. The reported losses range from $700 to $45,000, with an average loss of $12,348 per case. Combined, the cases represent $321,053 lost by local victims.
More than half of those victims are age 60 or older. One victim was 82.
The scams can also become more costly because victims sometimes make multiple payments. According to the presentation, 42 percent of the cases involved a victim using a cryptocurrency kiosk more than once. In some situations, victims were instructed to drive to another machine and repeat the process.
The pattern, police said, is remarkably similar across many of the cases.
A scammer contacts a victim and creates a sense of urgency or fear. The caller claims to be a deputy, federal agent or IRS agent and says there is a serious problem involving the victim’s finances or legal status. The victim is then told not to speak with anyone else.
From there, the scammer stays on the phone while directing the victim through the kiosk transaction.
Coral Springs currently has an estimated 13 to 16 cryptocurrency kiosks serving a population of about 138,783 people, according to the presentation. By comparison, Knoxville, Tennessee, has four kiosks for a population of 202,021.
The concern comes as governments in other parts of the country have also taken action against the machines.
Indiana, Tennessee and Minnesota banned these types of cryptocurrency kiosks this year, according to the presentation. Several local governments have taken similar steps, including St. Paul and Spokane, as well as communities in Utah and Massachusetts.
Florida has also adopted new restrictions, but Coral Springs police say those measures may not be enough to prevent the scams.
Gov. Ron DeSantis signed legislation on June 26 that will establish limits on cryptocurrency kiosk transactions. Beginning January 1, new customers will be limited to $2,000 in transactions per day, while existing customers will have a daily limit of $10,000.
The law also provides for refunds on a victim’s first transaction if the fraud is reported and requires warnings to appear on the kiosk screens.
Those safeguards are intended to make the machines harder for scammers to exploit. However, the police presentation argues that limits will not necessarily eliminate the problem.
Even a $2,000 transaction can represent a devastating loss for someone living on a fixed income or relying on savings. Police also noted that scammers can direct victims to different companies’ machines, potentially allowing them to continue making payments after reaching a limit at one kiosk operator.
That is why Coral Springs police are asking the city commission to consider going beyond regulation.
Their request is to prohibit cryptocurrency kiosks entirely within the city, according to the presentation prepared for commissioners.
The proposal is only an initial step at this point. The police department is bringing the issue before elected officials at the workshop, where commissioners will have an opportunity to discuss the reported losses, the current number of machines and the potential impact of a local ban.
For the residents who have already lost money, however, the damage has already occurred.
Twenty-six reported cases have resulted in more than $321,000 leaving the hands of Coral Springs victims since 2024. Many of those affected were older adults who were persuaded to believe they were dealing with authorities and that paying through a cryptocurrency kiosk was the only way to avoid arrest or protect their money.
Police now want to prevent more residents from receiving that call, walking into a store and approaching a machine that looks familiar but can send their money somewhere it may never come back from.
