Wisconsin Lawmakers Weighing New Legislation Aimed at Curbing Cryptocurrency Kiosk Scams

Monday, February 9th, 2026 -- 10:00 AM

(Wisconsin Radio Network) Wisconsin lawmakers are weighing new legislation aimed at curbing a surge in cryptocurrency kiosk scams, a type of fraud that has increasingly targeted vulnerable residents across the state.

According to the Wisconsin Radio Network, at a Capitol hearing Thursday, Greenfield resident Karin Schmeling shared testimony about becoming a victim of one of those scams.

Schmeling told lawmakers the experience went far beyond a simple financial scheme. “This was different. This was emotional manipulation,” she said. “When I look back at what was actually happening to me, I realized that the verbiage that the scammers used was very specific to isolating me and not allowing me time to breathe, think, or contact anybody else who might be able to talk me out of this.”

Schmeling described the moment she deposited her money into a crypto kiosk as physically overwhelming. “Once I got my money into the crypto kiosk, I felt like I could have thrown up. I was so sick to my stomach,” she said. “I said, it’s like my entire checking account is now in this machine and I did it of my own free will. How stupid could I be?”

Weston Republican Representative Patrick Snyder, one of the bill’s authors, said scammers often pose as trusted authorities to coerce victims into draining their accounts.

“Scammers will often pretend to be a government official, technical support, or bankers and direct the target to withdraw thousands of dollars and insert them into these crypto kiosks where the dollars are immediately converted into cryptocurrency that is delivered to scammers, often overseas,” said Snyder.

The legislation would require operators of cryptocurrency kiosks to implement more secure identity verification, establish daily transaction limits, and create a process for victims to request refunds. Wisconsin has more than 700 crypto kiosks statewide.

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