Montana residents are losing millions to cryptocurrency scams, including a growing number involving Bitcoin ATMs, state officials warn.
Montana State Auditor James Brown, who also serves as commissioner of securities and insurance, said his office has documented $600,000 in crypto ATM-related fraud since 2023. Brown emphasized that funds sent through these machines often go overseas, including to criminal networks in North Korea.
“They can get hard cash through cryptocurrency scams, and so this is a growing area of concern,” Brown told MTN News. “If you’re first-time using a Bitcoin ATM, please be aware that these payments are final. Once you send Bitcoin to another person, you cannot get your money back.”
The problem has drawn attention from local law enforcement. The Billings Police Department recently posted a Facebook alert warning of fake investment schemes, impersonation of officials, and demands for payments using Bitcoin.
“We’ve seen, at least that I’m aware of, two cases in the last couple weeks involving significant amounts of money—one was $35,000, and another $15,000,” said Lt. Samantha Puckett of the Billings Police Department.
Scammers are also increasingly combining cryptocurrency schemes with romance scams, targeting particularly elderly residents. Victims are befriended online and then pressured to send Bitcoin to secure a supposed relative in trouble or to invest in fraudulent opportunities.
Eighty-year-old Joseph Buentello, featured in a CBS News report, lost $5,000 after receiving a call claiming his son was in jail and demanding Bitcoin payment. “So they said there’s nothing we can do about it. That money’s already been distributed,” Buentello said.
Brown said he plans to push for legislation giving his office authority to regulate cryptocurrency ATMs, while police continue to issue warnings and advise ATM operators to help prevent fraudulent transactions.
“There are warnings, and a lot of the employees…try to stop victims, have them read the warnings on these machines to keep them from depositing funds,” Lt. Puckett said.
As cryptocurrency use grows, state officials urge caution, particularly among first-time users and older adults, who remain frequent targets of these scams.