Crypto ATM Scams Surge: $4.6 Million Lost in Wyoming
Law enforcement across Wyoming is sounding the alarm about a growing trend: criminals are exploiting Crypto ATMs in sophisticated scams, resulting in losses exceeding $4.6 million in just three of the state’s largest cities. A staggering $3 million of this total was reported in Gillette alone.
These Crypto ATMs, appearing much like traditional bank ATMs, have become an unassuming gateway for illicit funds flowing out of Wyoming and into the hands of foreign con artists. AARP estimates that Wyoming currently hosts approximately 45 Crypto ATMs, with 11 located in Cheyenne, and the number continues to rise.
How Criminals Exploit Crypto ATMs
While the machines themselves are legal, they’ve been co-opted by criminals who see them as the perfect escape route for stolen money. Once victims are convinced to transfer funds into a cryptocurrency account controlled by the scammer, the money can be instantly dispersed across numerous accounts, creating a complex web that makes tracking nearly impossible without extensive forensic accounting.
The problem isn’t limited to major cities; it’s a statewide issue impacting communities from Sheridan to Cheyenne. Cheyenne Police Sgt. Kevin Malatesta explains, “This has become a newer method to get money from people in scams. Previously, we saw victims directed to prepaid gift cards or money orders. The scams themselves are similar, but the method of currency has shifted to Bitcoin ATMs.”
The Lack of Oversight & The Rise of Crypto ATMs
A key factor driving this shift is the lack of a human teller at Crypto ATMs. Unlike traditional banking transactions, there’s no trained professional to question suspicious activity or potentially intervene before a victim completes a fraudulent transfer. This allows scammers to operate with greater ease and efficiency.
In Cheyenne, authorities estimate that Crypto ATMs were involved in at least $600,000 worth of scams in 2025. Victims often give money over weeks, months, or even years, making recovery incredibly difficult. Sheridan Police Officer Liz Shafer emphasizes, “Scammers use these methods because that money cannot be retrieved. We’re having some success with cash that’s been mailed, because we can intercept that. But if you put it into a crypto ATM, that money is gone.”
The Challenges of International Recovery
Even when the money can be traced, recovering it is a significant challenge. Scammers quickly move funds through multiple wallets and often operate from countries with which US law enforcement has limited jurisdiction. Officer Shafer notes, “I can’t go to Jamaica, and the FBI is overwhelmed with these cases. If someone lost $3,000, I have to tell them that money is likely gone.”
Resources for reporting fraud include: www.ic3.gov, reportfraud.ftc.gov, cftc.gov/complaint, and sec.gov/tcr.
Legislative Efforts to Combat the Problem
Law enforcement is working with lawmakers to implement new regulations for Crypto ATMs. Proposed measures include limiting daily transaction amounts and requiring clear fee disclosures. Campbell County Republican Ken Clouston plans to sponsor a bill requiring Crypto ATMs to adhere to rules set by the state banking division, including prominent warnings on the machines themselves.
Detective Alan Stuber of the Gillette Police Department highlights the common tactics used by scammers, including threats of arrest warrants and impersonating law enforcement officials. He emphasizes the importance of remaining calm and questioning any urgent requests for money.
Protecting Yourself from Crypto ATM Scams
The key to avoiding these scams is awareness and skepticism. Be wary of unsolicited calls or messages demanding immediate payment, and never send money to someone you haven’t met in person. If you suspect you’ve been targeted by a scam, report it to the authorities immediately.
