Jackson Bans Crypto Kiosks After $388M National Fraud Loss
Jackson becomes the first regional city to ban cryptocurrency kiosks, citing FBI data on rising losses and targeted scams against older adults.
Key points
- Jackson banned cryptocurrency kiosks unanimously after FBI data showed $388 million in national losses in 2025.
- Victims over 50 suffered more than half of the total losses, according to the city ordinance.
- Violators face a $500 daily fine, and property owners can be held liable for hosting the machines.
Jackson, Michigan, has banned all cryptocurrency kiosks. The city council passed the ordinance unanimously on Tuesday. This move follows a sharp rise in national fraud losses tied to these machines.
The ban prohibits the installation and operation of these kiosks. It also covers cashier-facilitated cryptocurrency transactions. Property owners who allow these machines on their sites face enforcement action.
National Fraud Losses Surge
FBI data shows kiosk-related complaints caused over $388 million in losses in 2025. This represents a 58 percent spike compared to the previous year. The agency recorded more than 13,400 complaints nationwide.
Victims over age 50 accounted for more than half of the total losses. Michigan residents lost over $210 million to crypto fraud in 2025. These figures prompted local officials to seek regulatory action.
Targeting Older Adults
AARP Michigan reported that scammers target older adults using fear and greed. Criminals often sit near machines to assist victims or hide their actions. Jason Lachowski, an AARP associate director, noted the lack of legitimate users.
The organization previously helped Sterling Heights create a similar ordinance. Jackson is the first city in the region to adopt this ban. This followed a presentation by the association in June.
Strict Penalties Enforced
Violators face a $500 fine for each day a kiosk operates illegally. Penalties accumulate quickly if the machine remains in place. The city can also seize money collected through illegal transactions.
Landlords and business operators share responsibility for violations on their property. The ordinance extends beyond physical machines to include manual exchanges. This comprehensive approach aims to eliminate all kiosk-related fraud in Jackson.
