Authorities Warn Crypto ATMs Becoming Tool for Scammers

(KNSI) – Local law enforcement and financial leaders are sounding the alarm about cryptocurrency kiosks, saying they’ve become the latest tool used by scammers to steal money from residents, particularly seniors.

Sartell Police Chief Brandon Silgjord and Jed Meyer, CEO of St. Cloud Financial Credit Union, say once the money is gone, there is virtually no way to get it back. “They use these crypto kiosks because the money is essentially untraceable and we are not able to get the refund back for them. Even if we’re contacted right away, it’s put into a digital wallet, transferred multiple times and it’s gone,” explained Chief Silgjord while speaking with KNSI.

The kiosks look like ordinary ATMs and sit in gas stations and convenience stores across Central Minnesota. The scam isn’t new, just the tool to steal is. Victims are contacted with an urgent message, a grandchild in trouble, a warrant for their arrest, and are then directed to deposit cash. The money moves into an anonymous digital wallet and disappears within minutes.

Silgjord says the problem is a bank teller is trained to question large cash withdrawals, and an ATM isn’t. “These kiosks are not monitored. They’re in vestibules of businesses. They’re in areas where people aren’t watching or even caring what transaction is happening there. And there’s really just no way to stop it.”

Minnesota’s Bureau of Criminal Apprehension estimates 80% of transactions at these kiosks have been fraudulent. Chief Silgjord’s advice is simple, don’t use them.

Two bills are working through the Minnesota Legislature. One would ban crypto ATMs statewide, driven in part by Representative Bernie Perryman, with several cities already passing local ordinances. Sartell is considering one. A second bill would allow regulated financial institutions to legally hold digital assets for members, keeping consumer protections local. Both have bipartisan support.

St. Cloud Financial Credit Union recently launched what it calls the first credit union digital asset vault, offering secure storage for members who already own cryptocurrency. Meyer says it’s about keeping money and protection close to home.

If you’ve been victimized, contact your bank and local law enforcement. And don’t be embarrassed. Chief Silgjord notes these scammers are experienced and sophisticated.

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