San Antonio takes action against $39 million crypto scam losses! What are the new rules?

The city of San Antonio, Texas, has approved a new regulation requiring all cryptocurrency kiosks across the city to prominently display warning signs against scams. This move follows 660 reported fraud cases between January 2024 and April 2026, involving losses totaling around $39 million according to police records.

How do the crypto scams typically unfold?

The San Antonio Police Department has observed a recurring pattern in these fraud cases. Scammers initiate contact by posing as law enforcement officials, court clerks, government employees, or representatives from local utility companies. They fabricate urgent situations—such as an arrest warrant, unpaid fine, or overdue bill—to pressure victims into transferring money immediately.

Victims are frequently instructed to deposit cash into a Bitcoin ATM, with scammers claiming this payment will resolve the supposed emergency. To ensure compliance, the fraudsters keep victims on the phone throughout the transaction, effectively isolating them from family, store employees, or emergency assistance.

Mandatory bilingual alerts at 193 locations

City officials identified 193 crypto kiosk locations in San Antonio, a figure that surpasses the count found in Dallas, Fort Worth, or Austin. Under the new rule, operators must clearly display warning signs in both English and Spanish on every machine.

These notices must use color-coded backgrounds and 18-point text, positioned so they are easily readable to users at the kiosk. The banners will outline common cryptocurrency fraud schemes and urge anyone feeling pressured to send funds to immediately dial 911.

Glossary: A crypto kiosk is a physical device, similar in appearance to a traditional bank ATM, where users can buy or sell crypto assets with cash. Unlike regular ATMs, these devices process blockchain-based transactions.

Enforcement of the new rules and distribution of these warnings will be overseen by the San Antonio Police Department. Businesses failing to comply could face daily fines ranging from $100 to $500 per violation. The regulation comes into effect on July 1.

Wider crackdown discussed across Texas

San Antonio’s recent action is part of a broader conversation taking shape statewide in Texas. Smith County Sheriff Larry Smith met with policymakers this week, advocating for an outright ban on these machines across the state. In May, Sheriff Smith called for this measure after a scam conducted from a Georgia prison deprived an elderly woman of $13,000.

State Senator Bryan Hughes’s office joined the discussion, alongside House Representatives Cole Hefner and Daniel Alders, as well as officials from the Texas Financial Crimes Intelligence Center. Attendees noted that Indiana, Tennessee, and Minnesota already have state-level bans on crypto ATMs.

Bravo further noted that crypto ATMs eliminate the human interaction a bank teller might provide, leaving victims more vulnerable. This lack of oversight allows scammers to exert greater control, making it easier for victims to carry out instructions without questioning suspicious requests.

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