MADISON, Wis. – Crypto currency is an industry with little regulation and the influx of Bitcoin ATMs or ‘BTMs’ has forced state agencies to step in and better protect Wisconsinites.
Crypto kiosks are still relatively new and for that reason they have been largely unregulated.
“Anywhere that you would maybe see like a normal bank ATM, you might see one of these crypto ATMs as well,” said Courtney Anclam, AARP-Wisconsin program specialist.
In a new report the FBI says from 2023 to 2024 they saw a 99% increase in complaints filed about crypto scams, with a 31% increase in financial losses.
“With the scams that we see. A lot of the time it’s stuff where like people are contacted and they’re told, you know, you were, supposed to have jury duty, you didn’t show up. Now you have to pay this spot. Fine. Like law enforcement is going to come get you whatever. And then people are sent to these crypto ATMs to send money, deposit, cash it, get sent to some of these crypto wallets” said Anclam.
The state department of financial institutions has provided new guidelines for crypto atm operators.
– They now have to limit transactions to $2,000 a day per customer
– Post a warning in front of their BTM
– Maintain anti-fraud policies and procedures.
“In terms of like finding these people and making it right. It’s incredibly difficult because, cryptocurrency, you can be largely anonymous. So, you don’t know really who you’re sending the money to. And they could use that wallet for one transaction, and then you just create a new wallet for their next one,” Anclam said.
Crypto ATM operators must also disclose to the DFI where their BTMs are located. For more information on these scams and others, click here.