Colorado’s Crypto ATM Crisis: Millions Lost as Scammers Run Rampant

While digital currency promised financial innovation, Colorado is now facing a statewide crisis as crypto ATM scams surge to alarming levels. Reports show crypto ATM fraud in the state has exploded, with losses exceeding $110 million in 2023 alone. This represents a tenfold increase from 2020 figures, creating serious concern among authorities.

The problem is growing rapidly in places like El Paso County, where annual cases jumped from just one in 2019 to 48 in 2024. Residents in that county alone have lost $1.5 million this year. Nationally, Americans lost $65 million to these scams in just the first six months of 2024.

Scammers use multiple methods to trick victims. They often pose as government officials or law enforcement through phone calls, fake notices, emails, social media, or texts. The criminals typically use real government names and legitimate phone numbers to enhance their credibility when contacting potential victims. Victims are told to withdraw cash and deposit it into crypto ATMs, thinking they’re protecting their money. Scammers provide QR codes linked to fraudulent crypto wallets, making the funds nearly impossible to recover.

Beware of imposters demanding crypto payments—once your cash becomes digital currency, it’s gone forever.

These ATMs are perfect targets for criminals. Transactions are difficult to trace, and money can be moved overseas instantly. The machines are widely available in everyday locations like gas stations and convenience stores, allowing for quick, irreversible transfers.

Elderly people are particularly vulnerable to these scams. Many victims lose their life savings, with some individual losses exceeding $100,000. The emotional impact is severe, as victims are often manipulated through fear tactics involving loved ones or legal threats. One victim lost $15,000 after being deceived by criminals using a fake warrant to create a sense of urgency.

Colorado officials are responding to the crisis. Lawmakers are considering new regulations requiring cooperation from ATM operators and better transaction tracking. Law enforcement has dedicated staff investigating these crimes, and the Colorado Division of Securities has issued public warnings.

The rapid spread of crypto ATM fraud represents a growing challenge for Colorado communities. As authorities work to implement protective measures, the financial and emotional toll on victims continues to mount across the state.