Idaho city bans crypto ATMs as fake-cop warrant scams drain $1.7 million from Treasure Valley residents

Star, Idaho, has banned crypto ATMs after scammers posing as police convinced residents across the Treasure Valley to feed cash into the machines, costing victims more than $1.7 million this year.

The scam is simple: a caller claims there is a warrant for your arrest and demands payment at a crypto ATM, staying on the line the whole time. About half of victims are over 60, according to the Treasure Valley Partnership.

“This is a scam. Law enforcement will never call and demand money to clear a warrant, and officers will never send you to a cryptocurrency ATM,” Eagle Mayor Brad Pike said. “If someone makes that demand, hang up. Call your local police department directly before you do anything with your money.”

Older residents among frequent targets

Officials say crypto ATM scams are affecting people across age groups, although older residents appear particularly vulnerable.

About half of the reported victims are over 60, according to the TVP release. The organization also stressed that people of all ages have fallen victim to the schemes.

The combination of an apparent law enforcement call, threats of arrest and instructions to make an immediate payment can make it difficult for victims to stop and verify the claims.

In some cases, scammers remain connected to victims throughout the transaction, reinforcing the pressure until the cryptocurrency payment is completed.

The TVP is encouraging residents to talk about crypto ATM scams with family members, friends and neighbors. Officials say recognizing the warning signs before a payment is made can be critical because recovering funds after a cryptocurrency transaction can be extremely difficult.

The warning also comes as local authorities consider whether additional restrictions on cryptocurrency ATMs could help reduce the opportunities available to scammers.

Star moves to ban crypto ATMs

Star has taken the most direct action among the communities mentioned in the TVP release. The Star City Council approved an ordinance in September banning cryptocurrency ATMs within city limits.

Mayor Trevor Chadwick said the decision was prompted by concerns about machines being used to facilitate financial scams targeting residents.

“When a machine is repeatedly being used as a tool to steal money from our residents, we have a responsibility to act,” Star Mayor Trevor Chadwick said in the release.

Chadwick said the ordinance was not intended to regulate cryptocurrency itself or dictate how residents use their money. Instead, he framed the measure as a response to the use of crypto ATMs in scams.

“This isn’t about regulating cryptocurrency or telling people how to spend their money. It’s about protecting our community from a scam that is devastating families, targeting our older residents, and putting money beyond the reach of law enforcement … If banning these ATMs helps stop even one family from losing their life savings to a scammer, it is absolutely worth doing,” Chadwick said.

Kuna considers restrictions as losses rise

Kuna is also considering a ban on cryptocurrency ATMs within city limits as officials respond to the reported losses.

The discussions come as crypto ATM scams continue to generate concerns among local officials and law enforcement in the Treasure Valley. The reported losses in Meridian alone reached $1.3 million among 30 victims during the first seven months of 2026.

Officials are emphasizing a simple warning: legitimate law enforcement agencies do not demand payment through cryptocurrency ATMs to resolve arrest warrants.

A request to deposit cash into a crypto ATM following an unexpected law enforcement call should therefore be treated as a potential scam, particularly when the caller threatens immediate arrest or insists that the victim remain on the phone.