As cryptocurrency continues to rise in popularity, so do scams associated with the loosely-regulated digital currency and Wisconsin advocates and lawmakers are working to change it.
Cryptocurrency ATMs, or BTMs allow people to buy digital currency using cash or a debit card. Fraud complaints about them increased by 99% in 2024, according to the Financial Crimes Enforcement Network. There are hundreds of these virtual currency kiosks across the state, which are often referred to as "federal safety locks" by scammers.
Courtney Anclam, senior program specialist for AARP Wisconsin, emphasized anyone can fall victim and more often than not, those who do are losing thousands to tens of thousands of dollars.
"You might get contacted saying that there was suspicious activity on your bank account ... you need to take all of your money out of your bank account because it's been compromised, put it in this machine, send it here and then it will be protected," Anclam described the scam.
Anclam pointed out to bring more awareness to the issue, AARP Wisconsin is hosting two free fraud prevention events in Madison and Green Bay on Sept. 30 and Oct. 16.
Two bills aimed at tightening regulations for cryptocurrency ATMs have been introduced in the Wisconsin legislature. The proposed laws would add to new BTM regulations set by the State Department of Financial Institutions this summer. They include daily transaction limits, mandatory registration for ATM operators and anti-fraud policies like warnings on machines about potential scams.
Anclam stressed they are great first steps toward enhancing consumer protections for Wisconsinites.
"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," Anclam underscored.
Anclam noted their fraud awareness events aim to cover scam warning signs along with other topics. The proposed measures also look to further expand consumer protections by requiring users to undergo rigorous identity verification during transactions and proposes to potentially refund fraud victims if they report the crime within 30 days.
