Imagine a late-night scenario where your phone rings from an unfamiliar number. Upon answering, a person claiming to be from Apple informs you that your computer has been compromised. They threaten legal repercussions if you don’t comply with their instructions, which include withdrawing $36,000 from your bank and depositing it into cryptocurrency ATMs. Fearful, you follow their demands, only to realize too late that your money is irretrievably lost. This harrowing tale is not fictional; it was shared by Kaitlyn Wenzel, a policy analyst and public outreach coordinator from the Montana Commissioner of Securities and Insurance (CSI), during a recent event aimed at educating seniors in Kalispell.
Understanding Crypto ATMs
Wenzel explained that a cryptocurrency ATM is a device that allows users to exchange cash for digital currencies, primarily Bitcoin. She illustrated this with a photograph of a Bitcoin ATM, emphasizing that funds deposited into such machines are converted to Bitcoin almost instantly and are non-refundable. Once the transaction is completed and the money is sent to a digital wallet that isn’t yours, it is permanently lost. Wenzel also pointed out that these ATMs lack regulation from both state and federal authorities.
Raising Awareness Among Seniors
During her presentation at Immanuel Living, Wenzel collaborated with representatives from the Flathead County Sheriff’s Office to alert seniors about the various tactics scammers use to exploit victims through cryptocurrency. She noted that individuals aged 60 and above are disproportionately targeted, making them particularly vulnerable to the rising trend of cryptocurrency scams. The session included data on scam recognition, personal stories similar to the one from Bozeman, and advice from law enforcement on how to navigate the digital landscape safely.
Identifying Scams: The Four Ps
Wenzel provided attendees with a framework for identifying scams, which she referred to as the “four Ps.” Scammers typically impersonate trusted figures, present a dilemma to resolve or a reward to claim, apply pressure for quick action, and request payment through unconventional methods. She also urged anyone who falls victim to a scam to report it to the CSI, as awareness is crucial for combating these crimes.
Significant Losses Reported
According to a press release from State Auditor James Brown’s office, 15 residents of Montana reported losses due to crypto fraud in 2024, amounting to nearly $900,000. However, the actual number of incidents is expected to be higher, as victims often feel embarrassed to come forward. Wenzel highlighted that scams involving cryptocurrency ATMs are escalating at a national level, with Americans suffering losses of $240 million in the first half of 2025 alone, an alarming indication that the prevalence of these scams is growing.
Legislative Response to Crypto Scams
The uptick in crypto-related fraud has prompted State Rep. Courtenay Sprunger, R-Kalispell, to take action. She organized the “Scam Smart” seminar to help educate seniors in the Flathead Valley about these issues, emphasizing the importance of community awareness in the fight against scams. Looking ahead, Sprunger intends to collaborate with the CSI to formulate legislation aimed at regulating cryptocurrency ATMs in Montana. She expressed her belief that outright banning these machines is not necessary, as they hold a legitimate place in the marketplace. However, she advocates for increased regulations to mitigate their potential risks.
Exploring Regulatory Options
During her address, Sprunger mentioned that while she is brainstorming several legislative options, she does not support a complete ban on cryptocurrency machines. Instead, she suggested potential measures such as placing ATMs behind counters to ensure customer interaction before transactions, or imposing limits on the amounts that can be deposited in a single transaction. Various states, regardless of political affiliation, have already implemented crypto-related regulations this year, including requirements for warning labels on machines and customer protections in cases of fraud. Sprunger is examining these examples as she collaborates with the CSI and local law enforcement to identify suitable policies for Montana.
