Wausau Police Warn of Rising Cryptocurrency Scams Amid Surge in Bitcoin ATM Fraud
Wausau, WI — Local law enforcement officials in Wausau have reported a notable increase in scams involving cryptocurrency, particularly through the use of bitcoin ATMs (BTMs). The rise in these fraudulent schemes has prompted new regulations and legislative efforts to better protect consumers across Wisconsin.
Bitcoin ATMs have become increasingly common in Wisconsin, with approximately 1,000 machines statewide, allowing users to buy digital currency with cash or debit cards. However, this growing accessibility has also led to a surge in fraud attempts targeting individuals, especially seniors and other vulnerable groups.
According to Wausau police reports, one recent Portage County victim was defrauded of $40,000 through a scam involving these ATMs. The most common scam involves impersonation of government officials or law enforcement, urging victims to transfer money through these machines under false pretenses.
These scams align with national trends. In 2024, nearly 11,000 complaints related to bitcoin ATM scams were filed, representing a 99% increase from the previous year. The FBI estimates total national losses from such scams to be nearly $247 million, primarily impacting people over the age of 60.
New Wisconsin Regulations to Combat Crypto Scams
Responding to these concerns, the Wisconsin Department of Financial Institutions (DFI) has implemented new rules for bitcoin ATM operators, effective as of July 2025. The key safeguards include:
- A $2,000 daily transaction limit to reduce large, rapid losses
- Mandatory registration and oversight of all bitcoin ATM operators in the state
- Visible posted warnings at kiosks outlining common scams and fraud risks
Michael Gavigan, assistant chief legal counsel at DFI, emphasized the importance of these guardrails to help victims recognize and halt fraudulent activity before substantial financial damage occurs. He noted that without daily transaction limits, the harm from scams could be virtually limitless.
Legislative Measures Targeting Crypto Fraud
State Senator Kelda Roys and Representative Ryan Spaude have introduced legislation aimed at establishing stricter protections for consumers using cryptocurrency kiosks throughout Wisconsin. Their proposed measures seek to combat misleading fees, deceptive pricing, and fraudulent schemes that often leave consumers financially devastated.
Senator Roys remarked on the rapid growth of these kiosks—from just over 4,000 in 2020 to nearly 30,000 nationwide today—and expressed the urgent need for government oversight to protect residents from increasingly sophisticated fraud attempts.
Risks of Cryptocurrency Investment
Beyond ATM scams, experts warn that investing in cryptocurrencies carries inherent risks, including price volatility, complex technical requirements, and irreversible transactions. The Wisconsin Department of Financial Institutions maintains an Investment Scam Tracker to alert residents about known fraudulent crypto schemes and advises extreme caution before engaging with digital asset investments.
Given the complex and high-risk nature of cryptocurrency, coupled with the substantial rise in scams, Wisconsin law enforcement and regulators urge consumers to stay vigilant. They advise verifying any requests for money transfers and never responding to unsolicited contacts offering investment opportunities or demanding payment through bitcoin ATMs.
For those suspecting they may be victims of crypto-related fraud, Wausau Police recommend immediately reporting incidents to local authorities and the Wisconsin Department of Financial Institutions.
Contact: Wausau Police Department and Wisconsin Department of Financial Institutions provide resources and guidance for those affected by cryptocurrency scams.