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Grand Forks residents have lost $474,803 to bitcoin and cryptocurrency scams since October 2022, with fraudsters increasingly exploiting bitcoin ATMs at local businesses to steal funds that are nearly impossible to recover, according to the city’s police department.
Det. Todd Riedinger, a financial crimes investigator, said elderly residents are frequently targeted through social media, text messages and phone calls that pressure victims into depositing cash at bitcoin ATMs using untraceable account information.
“Anytime somebody’s asking for payment in Bitcoin or gift cards, you’re being scammed,” said Det. Riedinger. “People, in general, just need to be aware that scams are happening.”
Scammers frequently instruct victims to deposit cash into bitcoin ATMs in local businesses, providing account information that is difficult to trace. Once deposited, funds can move through multiple accounts before being withdrawn, often by unsuspecting third parties. Law enforcement typically discovers these crimes only after substantial losses occur.
In one recent case, a 71-year-old man was persuaded that his bank was stealing his funds and planned to convert $20,000 to bitcoin. An attentive employee at a local business intervened after seeing the man at a bitcoin ATM, allowing police to prevent the loss.
“The damage is already done,” Riedinger said, noting that such interventions are rare.
North Dakota passed legislation in 2025 that imposed a $2,000 daily limit on bitcoin ATM transactions, aiming to reduce large losses. However, Riedinger noted that scammers have found ways around this restriction. He is now advocating for mandatory ID scans to confirm account ownership before deposits, limiting potential losses in a single transaction.
“If that’s what we have to live with — that our victim is still going to lose $2,000, but they’re not going to be able to send $20,000 in one shot I can live with that,” he said.
Riedinger hopes for stronger legislation in the 2027 session but encourages residents to remain vigilant in the meantime. He urges people to share their experiences and for business owners to consult with law enforcement regarding bitcoin ATMs.
Scammers often use fear tactics, including fake legal threats or urgent claims that money will be lost if victims don’t act immediately. Gift card scams operate similarly and are frequently targeted at older residents, who tend to have larger bank balances and a trusting nature.
“(Scammers) prey on the people who still have hope and faith in humanity that somebody wouldn’t willingly try to bleed you dry of everything you’ve worked for,” Riedinger said. “But they will.”
Authorities advise that anyone approached online for bitcoin or gift card payments should assume the request is a scam and report suspicious activity immediately.
