Scammers Exploit Crypto ATMs: Over $4.6 Million Stolen in Wyoming

Image Source: Cowboy State Daily

Crypto ATMs are increasingly being used by criminals in Wyoming, resulting in significant financial losses for residents. A recent report highlights that more than $4.6 million has been stolen using these machines in just three of the state’s largest cities, with a staggering $3 million reported lost in Gillette alone.

Law enforcement officials across Wyoming are raising alarms about the rise of scams linked to crypto ATMs, which have become a preferred method for scammers to siphon money from unsuspecting victims. According to the AARP, Wyoming has approximately 45 crypto ATMs, with a notable concentration in cities such as Cheyenne where 11 machines are located.

The Mechanics of Crypto ATM Scams

Crypto ATMs allow users to buy and transfer cryptocurrency, making them attractive targets for fraudsters. The machines are legal, yet criminals have found ways to manipulate them, convincing victims to deposit cash into accounts controlled by the perpetrators. Once the funds are transferred, they quickly disappear into a maze of digital wallets that are nearly impossible to trace.

Cheyenne Police Sergeant Kevin Malatesta explained that the trend has shifted from traditional payment methods like gift cards and cash to crypto ATMs in recent years. “This has become a newer method to get money from people in scams,” Malatesta stated, noting that these ATMs operate without any oversight personnel who might otherwise interrupt a suspicious transaction.

The Growing Scale of the Issue

Scams involving crypto ATMs aren’t limited to Gillette; they are widespread across Wyoming—from Sheridan in the north to Cheyenne in the south. In fact, Malatesta estimated that as of early 2025, Cheyenne crypto ATMs were linked to at least $600,000 worth of scams.

Officer Liz Shafer from the Sheridan Police Department shared alarming statistics of $1.5 million lost due to these scams over a two-year period. Unfortunately for victims, once the money is transferred into a cryptocurrency, retrieving it is nearly impossible. “Scammers use these methods because that money cannot be retrieved,” Shafer explained, highlighting the unique vulnerabilities created by the use of crypto ATMs.

Legal Implications and Potential Measures

Detective Alan Stuber from the Gillette Police Department reported handling between 75 to 100 fraud cases involving crypto ATMs annually, amounting to substantial losses. He has engaged in discussions with legislators about introducing new rules for crypto ATMs. Proposed measures may include limiting daily transactions and providing clearer information about fees directly on the machines.

Republican legislator Ken Clouston of Gillette plans to sponsor a bill aimed at regulating crypto ATMs to protect consumers better. By enforcing regulations similar to those for banks, the strategy hopes to mitigate the risks associated with these machines.

Emergency Steps for Victims

Despite these legal efforts, victims often find themselves in a dire situation. Fraudsters can chase down their targets relentlessly, employing panic-inducing tactics to force victims into financial distress. “They will use threats, mentioning warrants or bills, to maintain control over their victims,” Stuber said.

Community education is also becoming essential. During outreach sessions, officers like Shafer inform residents on spotting scams and convey the importance of reporting such crimes to local authorities. These measures aim to increase awareness and potentially prevent future victims from falling prey to scammers.

Protecting Yourself from Crypto ATM Scams

Individuals can take proactive steps to protect themselves against scams involving crypto ATMs. Here are some tips:

• Stay informed about the common tactics used by scammers.
• Do not make any transactions under pressure or when feeling panicked.
• Verify any claims before using a crypto ATM.
• Report any suspicious activity to law enforcement immediately.

Conclusion

The situation surrounding crypto ATMs in Wyoming serves as a poignant reminder of the vulnerabilities that come with emerging technologies. While law enforcement agencies are working hard to combat these fraudulent activities, education and vigilance are key for residents looking to protect their hard-earned money.

Frequently Asked Questions About Crypto ATM Scams

What are crypto ATM scams?

Crypto ATM scams involve criminals convincing individuals to use machines to transfer funds into accounts they control, leading to significant financial losses.

How can I report a scam involving a crypto ATM?

Residents are encouraged to report such incidents to local law enforcement agencies, which can help track scam patterns in the community.

What measures are being implemented to regulate crypto ATMs?

Legislators in Wyoming are discussing new regulations for crypto ATMs, including daily transaction limits and enhanced consumer warnings.

Can I recover lost money after a crypto ATM scam?

Unfortunately, recovering lost funds directly after a transaction has proven nearly impossible due to the nature of cryptocurrency transactions.

Who is most at risk for these scams?

Individuals aged 60 and older have increasingly been targeted, often due to familiarity with older scams that have now evolved to include crypto ATMs.