MT Banking Department News

Bitcoin ATM Scam Risks Rise Across Montana

The Montana Division of Banking shared a consumer alert warning residents about increased fraud risks associated with Bitcoin and cryptocurrency ATMs operating across the state. The alert references a NonStop LOCAL news article documenting the rise in scams targeting consumers using these machines. No specific regulatory action or compliance requirements were issued by the Department.

Crypto ATM Fraud Alert, Consumer Warning

The Montana Banking Department issued a consumer alert on October 22, 2025, warning consumers about crypto ATM fraud. The alert references a CNN investigative article regarding ongoing legislative debates across the country concerning crypto ATM operators and their potential liability for facilitating criminal fraud schemes. The alert does not impose new compliance obligations but serves as an informational warning to consumers.

Consumer Alert on Debit Card Holds

The Montana Department of Banking issued a consumer alert informing debit card holders about merchant-initiated holds at gas stations, hotels, and car rental agencies. The alert explains that merchants set hold amounts while financial institutions determine hold duration, which can range from several days to weeks. The department warns that these holds can tie up funds and lead to overdraft fees if account balances are insufficient.

Montana MLO Worker Classification Must Be W-2 in NMLS

The Montana Division of Banking and Financial Institutions issued a notice clarifying that mortgage loan originators (MLOs) must be classified as W-2 Employees in the NMLS system under Montana law (MCA 32-9-116(1)) and ARM 2.59.1701(3). The only exception applies to MLOs who are also owners of the employing mortgage broker or lender entity. The Division will reject sponsorship requests where worker classification is left blank or listed as Non-W-2 Employee and will contact companies with improperly classified MLOs.