Crypto ATM Fraud Surges 99% in Wisconsin, Lawmakers Push for Tighter Rules
MADISON, WISCONSIN — As cryptocurrency continues to gain mainstream traction, so too have scams tied to cryptocurrency ATMs, also known as BTMs. Wisconsin advocates and lawmakers are now stepping up efforts to curb the fast-growing problem.
According to the Financial Crimes Enforcement Network (FinCEN), fraud complaints tied to these kiosks rose by 99% in 2024. With hundreds of machines scattered across the state, scammers have increasingly targeted unsuspecting victims, often under the guise of “federal safety locks” or other false assurances.
How the Scams Work
Courtney Anclam, senior program specialist with AARP Wisconsin, explained that anyone can fall prey to these schemes, and victims often lose thousands to tens of thousands of dollars.
One common tactic involves scammers contacting individuals with false claims of suspicious bank account activity. Victims are then pressured to withdraw their savings and deposit the cash into a crypto ATM, with the promise that their funds will be “protected.” In reality, the money is transferred directly to criminals.
Awareness and Prevention
To raise awareness, AARP Wisconsin is hosting two free fraud prevention events this fall:
- September 30 in Madison
- October 16 in Green Bay
These events will educate residents about warning signs of scams, particularly before they reach the stage of sending money through cryptocurrency machines.
Legislative Action
Two new bills have been introduced in the Wisconsin Legislature aimed at tightening oversight of BTMs. The measures build on regulations enacted this summer by the State Department of Financial Institutions (DFI), which set rules for:
- Daily transaction limits
- Mandatory registration for ATM operators
- Anti-fraud safeguards, such as on-screen warnings about scams
The proposed legislation would expand protections by requiring enhanced identity verification for users and potentially allow refunds for fraud victims who report crimes within 30 days.
A Step Toward Stronger Consumer Protections
Anclam said these moves are an important start but emphasized the need for public education. “We also know that folks need to know warning signs of a scam so that before they get to the crypto ATM point of the transaction, they maybe start to become more suspicious and start to realize that this could be a scam,” she explained.
With fraud cases rising sharply, the combined push from lawmakers and advocates aims to strengthen consumer protections while keeping Wisconsin residents better informed.
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