Wisconsin targets Bitcoin ATM scams with new regulations
July 3, 2025
MORNING STARTING AT 430. WE HAVE A WARNING TONIGHT ABOUT YOUR MONEY. 12 NEWS INVESTIGATES LOOKING INTO SCAMS INVOLVING BITCOIN ATMS. YEAH. SO TONIGHT THE STATE OF WISCONSIN WANTS TO STEP IN TO TRACK AND STOP THE FRAUD AT THE MACHINES GROWING IN POPULARITY. INVESTIGATIVE REPORTER JAMES STRATTON REPORTS ON THE NEW RULES COMING SOON. THE PHONE CALL COMES IN, YOUR BANK ACCOUNT HACKED, OR YOU NEED TO PAY A FINE, AND YOU CAN MAKE IT ALL GO AWAY BY SENDING CRYPTOCURRENCY FROM A BITCOIN ATM. INVESTIGATORS SAY SCAMS LIKE THESE ARE INCREASING ACROSS WISCONSIN. PEOPLE GOING TO BITCOIN ATMS LIKE THIS AND UNKNOWINGLY SENDING MONEY DIRECTLY TO THIEVES. WE GET REPORTS OF PEOPLE GOING IN WITH, YOU KNOW, GROCERY BAGS OF CASH, PULLING UP A SEAT AND JUST FEEDING MONEY CONTINUOUSLY INTO THESE THINGS. THEY WORK SIMILAR TO A REGULAR ATM. PEOPLE CAN INSERT CASH AND GET CRYPTOCURRENCY, A DIGITAL FORM OF MONEY, INSTANTLY SENDING PAYMENTS. AND SINCE CRYPTOCURRENCY IS NOT BACKED BY BANKS AND IS NOT REGULATED, PAYMENTS TEND TO BE UNINSURED, MEANING VICTIMS CAN LOSE EVERYTHING. THE QUESTION IS, WHERE CAN YOU FIND A BITCOIN ATM? WE FOUND THEM IN LIQUOR STORES AND GAS STATIONS THROUGHOUT THE CITY OF MILWAUKEE. WHILE THEY CAN’T BE USED FOR LEGITIMATE TRANSACTIONS, LAW ENFORCEMENT AND STATE LEADERS SAY THEY’RE SEEING A SIGNIFICANT INCREASE IN SCAMS USING BITCOIN ATMS. CONSUMERS LOST 66% MORE IN 2024 THAN THEY DID IN 2023 FROM THEM. IT’S NOT UNCOMMON FOR US TO GET REPORTS OF LOSSES RELATED TO SCAMS USING BITCOIN ATMS OR BTMS, WHATEVER YOU WANT TO CALL THEM THAT ARE, YOU KNOW, THOUSANDS AND THOUSANDS AND THOUSANDS OF DOLLARS, EVEN JUST IN A SINGLE SITTING. TO PREVENT THAT, THE STATE DEPARTMENT OF FINANCIAL INSTITUTIONS WILL SOON LIMIT THE DAILY TRANSACTION AMOUNT TO TWO GRAND. THE NEW GUIDANCE, IMPLEMENTED AT THE END OF JULY, ALSO REQUIRES COMPANIES TO REGISTER THEIR BITCOIN ATMS, HAVE THEIR OWN ANTI-FRAUD POLICIES AND SPECIAL FRAUD SIGNS WARNING CONSUMERS THEY COULD BE PART OF A SCAM. 12 NEWS INVESTIGATES FOUND ANTI FRAUD AND SCAM SIGNS ALREADY POSTED ON SOME BITCOIN ATMS. ANYONE CAN BE A VICTIM OF THIS. IT DOESN’T MATTER WHO YOU ARE OR WHAT KIND OF EDUCATION YOU HAVE, HOW MUCH FINANCIAL SOPHISTICATION YOU HAVE, IT RUNS THE GAMUT. THE GOAL TO PROTECT CONSUMERS FROM LOSING THOUSANDS IN MILWAUKEE JAMES STRATTON, WISN 12 NEWS. SO IF BITCOIN OPERATORS DON’T IMPLEMENT THE NEW POLICIES BY JULY 27TH, THE STATE COULD PENALIZE THEM. NOW, IF YOU BELIEVE YOU’VE BEEN SCAMMED USING A BITCOIN ATM, 12 NEWS INVESTIGATES WANTS TO HEAR FROM YOU.
Wisconsin targets Bitcoin ATM scams with new regulations
Wisconsin is implementing new rules to combat increasing scams involving Bitcoin ATMs, including transaction limits and mandatory anti-fraud measures.
Updated: 6:36 PM CDT Jul 3, 2025
Wisconsin is stepping in to combat scams involving Bitcoin ATMs, which have been increasing across the state, by implementing new regulations to protect consumers. Scammers often pressure victims to pay fines or fees using cryptocurrency, leading to significant financial losses.The state Department of Financial Institutions will soon enforce new regulations, including a daily transaction limit of $2,000 and mandatory registration for Bitcoin ATM operators. These measures, effective at the end of July, aim to protect consumers from losing thousands of dollars and to track the extent of the problem.Reports indicate that victims often bring large amounts of cash to Bitcoin ATMs, which function similarly to regular ATMs, allowing users to insert cash and receive cryptocurrency instantly. These ATMs are commonly found in liquor stores, gas stations and other storefronts throughout Milwaukee and Wisconsin.While they can be used for legitimate transactions, law enforcement and state leaders have noted a significant increase in scams facilitated by these machines. Consumers lost 66% more in 2024 than in 2023 due to Bitcoin ATM scams, according to the state DFI.”We get reports of people going in with, you know, grocery bags full of cash, pulling up a seat and just feeding money into these things,” said Mike Gavigan, assistant chief legal counsel of Wisconsin Department of Financial Institutions.The new guidance also requires companies to have their own anti-fraud policies and post special fraud signs warning consumers of potential scams. Investigations have found anti-fraud and scam signs already posted on some Bitcoin ATMs. The goal is to protect consumers from losing thousands and to assess the problem’s scope for potentially implementing more protections.”Anyone can be a victim of this. It doesn’t matter who you are, how much you know, financial sophistication you have. It runs the gamut,” Gavigan said.The enforcement also requires operators to stop the transmission of the sender’s money if they suspect fraud or crime, requires them to keep up with record keeping and suspicious activity and allows the state to revoke or suspend their license if they violate rules.Bitcoin operators must implement the new policies by July 27, or they could face penalties from the state. To read the entire policy, click here.
Wisconsin is stepping in to combat scams involving Bitcoin ATMs, which have been increasing across the state, by implementing new regulations to protect consumers. Scammers often pressure victims to pay fines or fees using cryptocurrency, leading to significant financial losses.
The state Department of Financial Institutions will soon enforce new regulations, including a daily transaction limit of $2,000 and mandatory registration for Bitcoin ATM operators. These measures, effective at the end of July, aim to protect consumers from losing thousands of dollars and to track the extent of the problem.
Reports indicate that victims often bring large amounts of cash to Bitcoin ATMs, which function similarly to regular ATMs, allowing users to insert cash and receive cryptocurrency instantly. These ATMs are commonly found in liquor stores, gas stations and other storefronts throughout Milwaukee and Wisconsin.
While they can be used for legitimate transactions, law enforcement and state leaders have noted a significant increase in scams facilitated by these machines. Consumers lost 66% more in 2024 than in 2023 due to Bitcoin ATM scams, according to the state DFI.
“We get reports of people going in with, you know, grocery bags full of cash, pulling up a seat and just feeding money into these things,” said Mike Gavigan, assistant chief legal counsel of Wisconsin Department of Financial Institutions.
The new guidance also requires companies to have their own anti-fraud policies and post special fraud signs warning consumers of potential scams. Investigations have found anti-fraud and scam signs already posted on some Bitcoin ATMs. The goal is to protect consumers from losing thousands and to assess the problem’s scope for potentially implementing more protections.
“Anyone can be a victim of this. It doesn’t matter who you are, how much you know, financial sophistication you have. It runs the gamut,” Gavigan said.
The enforcement also requires operators to stop the transmission of the sender’s money if they suspect fraud or crime, requires them to keep up with record keeping and suspicious activity and allows the state to revoke or suspend their license if they violate rules.
Bitcoin operators must implement the new policies by July 27, or they could face penalties from the state. To read the entire policy, click here.
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