Crypto ATM Fraud on the Rise Nationally, Prompting Montana Regulatory Push
Mariah Thomas | Flathead Beacon
October 22, 2025
Cryptocurrency ATMs remain unregulated by the federal or state government, but one Kalispell legislator is working with the Commissioner of Securities and Insurance and local law enforcement to change that
magine: you’re sitting home alone, it’s late and, suddenly, your device lights up with a phone call from a number you don’t know.
You answer, only for them to tell you they’re a representative from Apple. They tell you your computer has been hacked. If you don’t follow instructions, they claim you’ll be charged with a crime. You’re to go to the bank, withdraw $36,000 in funds and deposit them into cryptocurrency machines. Scared of what they’re saying, you listen and follow instructions — and before you know it, you’ve lost the money for good.
That story isn’t imaginative. It’s the story of a real fraud victim from Bozeman, one that Kaitlyn Wenzel, a policy analyst and public outreach coordinator with the Montana Commissioner of Securities and Insurance’s (CSI) office, shared with a crowd of seniors in Kalispell Tuesday morning.
“Now, a crypto ATM is a machine that is used to convert cash to cryptocurrency. In this case, it is a Bitcoin ATM,” Wenzel said, pointing to a photo. “So, the money put into this machine is converted from cash to Bitcoin. Now, Bitcoin payments are final. When you put money into this machine and send it to someone’s digital wallet that is not your own, that money is gone in the drop of a penny. It is gone instantaneously and forever.”
She added crypto ATMs remain unregulated by the federal or state government.
Wenzel presented at Immanuel Living and joined a panel of representatives from the Flathead County Sheriff’s Office to warn local seniors about the ways scammers are using cryptocurrency to defraud their victims. Nationally, Wenzel said people aged 60 and over are the most-commonly defrauded age group. They are also susceptible to the growing threats of cryptocurrency related scams.
Her presentation covered statistics, how to recognize scams and offered several stories like the fraud victim in Bozeman, while the law enforcement panelists shared ways to keep safe in the digital world.
Wenzel told the crowd that spotting a scam requires looking for the “four Ps.” A scammer will pretend to be someone trustworthy; present either a problem to solve or a prize to be gained; put pressure on their victim to act quickly; and ask for payment in an unusual way. She also encouraged those who are victims of a scam to report it to CSI.
Per a March press release from State Auditor James Brown’s office, 15 Montanans made crypto fraud complaints to the state in 2024. Those 15 cases totaled nearly $900,000 in financial losses. The actual figure is likely higher, as Wenzel said shame can be a barrier to reporting scams.
Wenzel also highlighted that crypto ATM scams are also on the rise at the federal level. In the first half of 2025 alone, Americans lost $240 million to crypto ATM scams across the country. But what concerns Wenzel and CSI more is that that figure represents the total amount lost to similar scams in 2024. It means the scams are increasing in pace.
The increase in crypto crimes and fraud, along with the urging of CSI and local police, have spurred State Rep. Courtenay Sprunger, R-Kalispell, to action. Sprunger organized Tuesday’s “Scam Smart” seminar for seniors in the Flathead Valley to begin educating the community, something the panelists said was important in fighting scams. But in the long term, Sprunger said she plans to work with CSI to draft legislation regulating crypto ATMs in Montana.
“I always joke that I don’t have all that many great ideas, but I know people who do,” Sprunger said.
She’s in the early phases of working through several options for potential legislation, she shared with the crowd Tuesday morning.
She said she doesn’t think banning cryptocurrency machines outright is the answer. The machines have a place in a free marketplace, but more regulation could help cut down on the damage they can cause.
For instance, what if the machines were put behind the counter at stores, requiring interaction with a real human before depositing money into it? Or, what if there were limits on how much you could deposit per transaction?
Similar ideas have been explored in other states of all political stripes. Democratic-run Illinois, deep-red Oklahoma and more purple Arizona have all passed crypto-related legislation this year. Their legislation runs a gamut of regulations from requiring warnings on machines, limiting how much money customers can dispense or withdraw in a day and allowing customers to have recourse in the event that they are defrauded.
Sprunger said she’s examining what other states are doing for inspiration as she works with CSI and local law enforcement agencies to determine what type of policy might be a good fit for Montana.
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