MADISON, WI – Today AARP Wisconsin is applauding a state agency’s effort to protect consumers by issuing guidance for operators of cryptocurrency machines.
These machines, often called Bitcoin ATMs or “BTMs,” enable users to engage in various cryptocurrency-related transactions that often prove to be fraudulent. BTMs have been placed in hundreds of gas stations, convenience stores, and even shopping malls across Wisconsin.
The Wisconsin Department of Financial Institutions (DFI) has provided guidance to BTM operators which clarifies how the agency intends to apply Wisconsin’s Money Transmission law to BTMs. Operators must:
- Limit transactions to $2,000 per customer per day;
- Post a warning on the front of the BTM;
- Maintain anti-fraud policies and procedures;
- Comply with all requirements of the law, including licensure and disclosure to DFI of all locations in the state where BTMS are operated.
“This is great news for Wisconsin consumers. It’s a good first step towards curbing this type of fraud,” said AARP Wisconsin State Director Martha Cranley. Because crypto kiosks are still relatively new and were largely unregulated, Cranley said they lack sufficient consumer fraud protections. As a result, criminals have stolen millions of dollars from Wisconsinites through BTM-related scams, and older residents are frequently the targets of these scams.
“If someone asks you to send money to them via a crypto ATM, it’s almost certainly a scam,” Cranley said. “We all need to remain aware and vigilant because this type of fraud is already here and it’s infecting our communities.”
AARP Wisconsin plans to work with a wide range of stakeholders to push for legislation that would support and enhance DFI’s guidance, providing more consumer protections in Wisconsin.
From 2023 to 2024, the FBI saw a 99% increase in the number of complaints related to BTMs and a 31% increase in financial losses. Earlier this year, the Iowa Attorney General published the results of an investigation finding that the majority of BTM transactions in that state were scam related.
These findings match on-the-ground reports from Wisconsin law enforcement agencies and DFI’s Department’s Division of Securities, which is experiencing a significant increase in the number of complaints related to BTM-enabled scams.
“This guidance is a huge win for Wisconsinites and law enforcement agencies who are fighting the wave of fraud in their communities as a result of these machines,” Cranley said.
