Minnesota attorney general warns against cryptocurrency ATM scams

Minnesota Attorney General Keith Ellison has issued a warning to residents about the dangers of cryptocurrency ATM scams as part of his Scam Stopper series. He urges people to avoid these ATMs entirely due to their untraceable transactions that scammers exploit. Reports of victims and surging financial losses underscore the growing threat.

In Saint Paul, Minnesota, Attorney General Keith Ellison alerted residents to the risks posed by cryptocurrency ATMs, emphasizing their role in facilitating scams. This advisory forms part of the ongoing Scam Stopper initiative designed to protect consumers from fraudulent activities.

Ellison highlighted that while the ATMs themselves are legitimate, scammers frequently deceive victims into using them for payments. "While these ATMs are not scams themselves, many scammers trick their targets into sending money via cryptocurrency ATM because those transactions are virtually impossible to trace," he stated. He recommended steering clear of these machines altogether to minimize exposure to fraud.

The Attorney General's Office has fielded multiple complaints from individuals scammed through these ATMs. According to Federal Trade Commission figures, losses from such incidents escalated dramatically, rising from $12 million in 2020 to $250 million in the first half of 2025. The typical loss per cryptocurrency ATM scam victim stands at $10,000, far exceeding the median scam loss of $497 across all types.

Ellison's office stressed that any demand for payment via cryptocurrency ATM from a purported government agency is almost certainly fraudulent. Residents are advised to report suspicious activities to local law enforcement or the Minnesota Department of Commerce. For potential refunds, victims must act quickly: notifying the ATM operator and relevant authorities within 72 hours of creating an account may enable recovery of funds.

This warning comes amid a broader increase in cryptocurrency-related fraud, prompting proactive measures to educate and safeguard Minnesotans.

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Minnesota lawmakers are advancing a bipartisan bill for a statewide ban on cryptocurrency kiosks, which number about 350 in gas stations and retailers, as scams persist despite 2024 regulations. Nearly 20 other states have adopted measures, but advocates call for prohibition. Introduced last month by Rep. Erin Koegel, the proposal faces another legislative hearing this week.

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State leaders and consumer advocates in South Carolina have highlighted a surge in cryptocurrency scams, particularly those exploiting crypto ATMs. Officials gathered at the State House to detail how these schemes operate and urged greater public awareness. Legislation is under consideration to enhance protections around these machines.

A bill aimed at regulating cryptocurrency kiosks to combat fraud has progressed through the Wyoming Legislature. House Bill 75, sponsored by Rep. Ken Clouston, passed the House and advanced in the Senate with an amendment for immediate effect. The measure addresses scams that have led to significant financial losses in the state.

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South Korean authorities accidentally revealed the recovery phrase for a cryptocurrency wallet in a press release, leading to the theft of nearly $5 million in seized assets. The National Tax Service issued an apology and launched an investigation into the breach. This incident highlights ongoing challenges in securing digital currencies by law enforcement.

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