We investigate how the fixed point algebra of a C * -dynamical system can differ from the underlying C * -algebra. For any exact group Γ and any infinite group Λ, we construct an outer action of Λ on the Cuntz algebra O 2 whose fixed point algebra is almost equal to the reduced group C * -algebra C * r (Γ). Moreover, we show that every infinite group admits outer actions on all Kirchberg algebras whose fixed point algebras fail the completely bounded approximation property.2000 Mathematics Subject Classification. Primary 22D25, 46L55, Secondary 46L05.