The Montana State Auditor’s office is dedicated to both educating Montanans and protecting them from financial scams and investment fraud. We take this responsibility seriously, as financial abuse, particularly in investments, continues to grow. In March, the FTC reported that Americans lost more than $12.5 billion to fraud in 2024, a staggering 25% increase from 2023.
As Montana’s State Auditor, I am closely following the rise of digital assets, including cryptocurrencies, as a viable form of commerce. The Montana legislature is currently considering a bill I support that would authorize this agency to regulate companies offering network tokens, putting Montana at the forefront of economic innovation and growth.
However, despite these promising developments, cryptocurrency and bank transfer scams remain the top sources of financial fraud. In response, I’ve directed my office to take a strong and aggressive stance against scammers, particularly those behind the “Pig Butchering Scheme.” This scam, originating from the Chinese phrase “sha zhu pan,” involves scammers building trust with victims through social media or dating sites. Once trust is established, they convince victims to invest in fake opportunities, leading to devastating financial losses.
Older Montanans are especially vulnerable to these scams due to their assets and potential social isolation. Montana ranks sixth in the nation for residents over the age of 65, making it a prime target for these predators. In 2024 alone, our office handled 15 crypto fraud complaints, totaling nearly $900,000 in losses. However, this is likely just a fraction of the total, as many cases go unreported due to embarrassment or fear.
To protect yourself, be aware of common red flags: unsolicited investment offers, random cryptocurrency payment requests, and promises of high returns with little risk. Scammers may use secretive communication methods and often ask victims to keep transactions confidential. Establishing a trusted contact through your financial institution, or a family member or friend, can help identify fraud early to prevent significant losses.
Unfortunately, only about 4% of scam losses are reported, making it harder for us to fight back. But I won’t back down. I stand firm against these criminals and will hold them accountable to protect Montana consumers. My message to scammers is simple: Not in Montana.
If you suspect a scam, report it immediately to our office at 406-444-2040 or visit csimt.gov.
James Brown is the Montana Commissioner of Securities and Insurance, Montana State Auditor’s office.