Rising Fraud Cases Prompt City Response

San Antonio, Texas, recorded 660 cryptocurrency-related fraud reports from January 2024 through April 2026, resulting in approximately $39 million in losses according to police data. In response, city officials approved an ordinance requiring warning signs at every crypto kiosk.

The city identified 193 such kiosk locations, exceeding the numbers in other major Texas cities including Dallas, Fort Worth, and Austin. The new rules take effect on July 1.

Details of the New Regulations

Operators must post bilingual signs in English and Spanish at each kiosk. The signs require color-coded backgrounds and 18-point font, placed for clear visibility to users at the machine. Content includes descriptions of common fraud methods and instructions to contact 911 if feeling pressured to send money.

The San Antonio Police Department handles distribution of the signs and enforcement. Non-compliance carries fines ranging from $100 to $500 per violation per day.

Police noted that scams follow a consistent pattern. Callers pose as law enforcement officers, court officials, government agents, or utility company representatives. They create fabricated emergencies such as arrest warrants, unpaid fines, or overdue bills, then direct victims to deposit cash at a cryptocurrency kiosk. Scammers remain on the phone throughout the process to prevent victims from seeking advice or help.

Scam Patterns and Victim Impact

Data shows nearly 38% of victims were aged 66 or older, with ages ranging from teenagers to 90 years old. While most cases involved losses under $50,000, several exceeded $1 million each.

Once funds convert to cryptocurrency and transfer, recovery becomes extremely difficult, especially if sent across borders.

Bravo pointed out that cryptocurrency transactions occur faster than traditional ones and leave victims isolated without the human interaction typical at banks.

Broader Texas Discussions

San Antonio's measures have sparked wider talks across Texas. Smith County Sheriff Larry Smith met with state legislators to advocate for a statewide ban on crypto kiosks. This followed an incident where an elderly woman lost $13,000 to a scam operated from a prison in another state.

Participants included representatives from the office of State Sen. Bryan Hughes, State Rep. Cole Hefner, State Rep. Daniel Alders, and the Texas Financial Crimes Intelligence Center. Several other states, including Indiana, Tennessee, and Minnesota, have already implemented full bans on such machines.

The ordinance represents a targeted effort to inform users at the point of transaction and reduce successful fraud attempts in the city.