Department of Financial Institutions Releases Crypto ATM FAQs to Boost Financial Literacy and Scam Awareness

BISMARCK, N.D. - The North Dakota Department of Financial Institutions has released a new financial literacy resource on crypto ATMs, now available on its website, to help residents understand how these machines work, what protections state law provides, how to avoid scams and how to verify licensed operators. The resource offers clear and simple answers to common questions about crypto ATMs, also called virtual currency kiosks. These machines allow users to convert cash into digital currency such as Bitcoin, Ethereum and Tether. They are often located in grocery stores, gas stations and shopping centers and may appear similar to traditional bank ATMs or may even be a service offered within a traditional ATM.

The department developed the FAQs to address growing public interest in cryptocurrency and rising concerns about fraud. While many crypto ATMs are operated by legitimate, licensed businesses, scammers are increasingly using them as part of fraud schemes. The resource is intended to inform consumers and promote safe use, not discourage lawful activity.

"Crypto ATMs can be a convenient financial tool when used properly," said Commissioner Lise Kruse. "Our goal is to ensure North Dakotans understand how they work, know their rights under state law, and recognize warning signs of scams before they lose money."

State law requires crypto ATM operators in North Dakota to be licensed as money transmitters and to meet specific antifraud standards. These include monitoring transactions for suspicious activity and maintaining dedicated compliance and customer protection staff. The FAQs explain these protections and guide consumers on how to confirm whether a company is authorized to operate in the state through the Nationwide Multistate Licensing System Consumer Access.

The department has become aware of an increasing number of crypto-related fraud cases in recent years, with losses impacting North Dakota residents. Scammers often create a sense of urgency and instruct victims to deposit cash into a crypto ATM or send digital currency to resolve a fraudulent issue.

For example, frauds have involved scammers impersonating law enforcement who then inform victims that they have a warrant for missed jury duty, or scammers posing as friends or relatives in urgent need of money. Once funds are sent, they can be difficult to recover.

Older adults, veterans and young adults appear to be frequent targets of these scams. The department encourages all residents to pause and verify any request involving cryptocurrency, especially when it involves unfamiliar individuals or urgent demands.

The FAQs highlight key warning signs. No legitimate business or government agency will ask someone to deposit cash or purchase cryptocurrency at a crypto ATM to fix a problem or protect funds. Consumers should avoid sending money to people they do not know, scanning unknown QR codes, or sharing personal financial information.

The department also urges residents to verify callers by using official contact information and to contact customer support if they have concerns about a transaction. Licensed crypto ATM operators in North Dakota are required to provide live customer service during extended hours.

Residents who believe they have been targeted or victimized by a scam should contact local law enforcement and may report the incident to the North Dakota Attorney General's Office Consumer Protection Division. Complaints can also be filed online directly with the department.

The Crypto ATM FAQs and additional financial literacy resources are available at https://www.nd.gov/dfi/crypto-atms.

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CONTACT: Jennifer Skjod, Communications Director | 701-328-7681 | [email protected]