Crypto ATM fraud is becoming an increasingly serious issue across the United States, with losses soaring and impelling states like Montana to consider regulatory action. These scams typically start with a phone call, text, or email from someone impersonating an official—posing as representatives from companies like Apple or even as government agents. Victims are told dramatic stories: their accounts are compromised, they face legal trouble, or they’re promised quick returns on investments. The fraudsters pressure individuals, often seniors, to withdraw large sums of cash and deposit the money into a cryptocurrency ATM. Once the cash is converted to Bitcoin and sent to a scammer’s digital wallet, the funds are nearly impossible to recover.

The problem is growing rapidly. In the first half of 2025 alone, Americans lost $240 million to crypto ATM scams—equal to the total reported over all of 2024, highlighting how fast these crimes are escalating. Bitcoin ATMs convert cash directly into cryptocurrency, and transactions made through these machines are instant and irreversible. This makes them a prime target for scammers, who exploit the finality of crypto transfers.

Montana officials are not ignoring the trend. Inspired by mounting losses, the Montana Commissioner of Securities and Insurance has begun outreach and education programs, including seminars to help seniors and the wider community spot and avoid these scams. State legislators are also reviewing possible laws to regulate crypto ATMs, aiming to strike a balance between allowing access for legitimate users and protecting people from exploitation. While outright bans are not on the table, stricter rules and oversight may soon be coming.

As the use of crypto ATMs expands and digital currency becomes more mainstream, raising awareness and pushing for sensible regulations may be the most effective ways to combat the growing threat of crypto ATM fraud.