State auditor says nearly $1 million in fraud loss prevented; fraud reports on record pace

With a quarter of 2026 in the rearview mirror, Montana State Auditor James Brown announced that his office has helped prevent nearly $1 million in fraud-related losses for Montanans.

According to a press release from Brown’s office this week, the Auditor’s office received 25 fraud complaints in the first three months of 2026, up from 11 over the same period last year. Those 25 complaints totaled more than $3.3 million in reported losses. 

“We’re seeing absolutely incredible numbers in 2026,” Brown told the Daily Montanan in a phone call, adding that his office had helped prevent $946,000 in fraud on the front end of transactions. 

Brown attributes the record number of complaints to increased outreach efforts by his team to warn Montanans of fraud-related risks and help them understand the resources available.

Since Brown took office in 2025, one of his goals for the office has been to put together strategic performance metrics, which has included tracking prevented fraud losses and outreach. 

Brown said his office has met with 880 Montana residents in person since he took office.  

Those outreach events have ranged across the state from Scobey to Deer Lodge and focus among the state’s older populations through partnerships with senior advocate groups.

“We believe there’s a clear link in what we’re seeing statistically — the more we get out as an agency to inform the public about fraud schemes, what folks should be looking for … the more we’re getting people to inform us, and the better we can track these numbers in Montana,” Brown said.

In holding these educational sessions, Brown said the goal is not just to warn Montanans about potential fraud but to encourage them to step forward and make a report if they’ve already fallen victim to a scheme — which can be a difficult proposition for many individuals. 

“Often, we hear that people are embarrassed that they got caught up in it, and that’s understandable,” Brown said. “But we encourage people to get over it and report it anyway so we can catch onto these people and prevent other people from being subjected to their schemes. Fraud flourishes in the dark.”

His team has also focused on outreach with financial advisors in the state to share the authority the Commissioner of Securities and Insurance has to combat fraud for their clients. 

On the professional regulator side, Brown said working with advisors and brokers can help disrupt fraud somewhere along the process. 

“The best way to do that is at the point of payment,” Brown said. “That’s where we’re being very successful.” 

But Brown said one of the biggest barriers to addressing fraud schemes is underreporting — some estimates show that 50-80% of fraud is unreported, according to a recent Consumer Federation of America Report. 

Earlier this month, the FBI published its 2025 Internet Crime Report, which showed cyber-enabled crimes defrauded Americans of nearly $21 billion in one year, with investment fraud accounting for nearly 49% of scam-related losses and cryptocurrency-related scams among the costliest. 

Brown said that crypto schemes are on the rise in Montana, including through Bitcoin ATMs or other cryptocurrency ATMs. Having a victim liquidate their assets and dump it into an ATM is an easier method of tricking someone out of their money than trying to make false investments through a regulated brokerage, he said. 

During the 2027 Legislature, Brown plans to work with lawmakers on at least three bills related to cryptocurrency ATM operation to increase regulatory oversight and enhance criminal penalties for anyone who uses them to perpetrate fraud. 

Several states have worked to pass stricter laws related to cryptocurrency in the last year including Maine, where new laws have aided that state’s consumer protection agency recover nearly $2 million scammed through cryptocurrency kiosks. 

For Montanans, reporting a fraud scheme can be done by calling the CSI office at 406-444-2040 or by filling out a form online at csimt.gov/file-a-complaint/. 

In Montana, the agency has a 72-hour rule to investigate new reports of fraud and determine whether it’s within the agency’s jurisdiction or needs to be referred to the Attorney General’s office or federal partners. 

Credible reports will be sent to the agency’s team of investigators to follow up and determine whether it is a criminal or civil matter, and work with the appropriate law enforcement entities. 

Brown said the agency has added an additional investigator since he took office, and the team’s fraud investigations have risen 80% over the last eight months, underscoring the high priority he’s made of the issue. 

“My goal as a public servant is to protect Montanans and their pocketbooks,” Brown said in a statement. “ … I make a promise to those who would do harm to my Montana neighbors: I will find, investigate, and prosecute you to the fullest extent of the law.”