Fraud in Montana is evolving rapidly—and state officials warn that artificial intelligence is making scams more convincing and harder to detect than ever before.
On a recent episode of Voices of Montana, State Auditor and Commissioner of Securities and Insurance Jim Brown said fraud investigations and prosecutions have surged 80% during his first 15 months in office, underscoring what he calls a “completely different landscape” for financial crime.
“About 22% of bad actors are now using AI,” Brown said, pointing to scams involving cloned voices of loved ones, deepfake videos, and fraudulent investment platforms. Among the fastest-growing threats: crypto-related fraud. These schemes often involve unregistered securities, vague promises of high returns, and so-called “AI-powered” trading bots that don’t actually exist.
Brown’s office is also tracking a rise in fake equity offerings—scammers promoting shares in nonexistent companies before disappearing with investors’ money.
Education Ramps Up
To combat the trend, the agency has undertaken education as its first line of defense. With support from the state legislature, outreach teams have now visited all 56 counties, hosting fraud prevention workshops that teach Montanans how to spot red flags and report suspicious activity.
“Once the money is gone—especially with cryptocurrency—it’s almost impossible to recover,” Brown said.
That reality is reflected in the numbers: while Montana offers a restitution fund of up to $50,000 for victims, the average loss in crypto and investment fraud cases is around $176,000.
Aggressive Enforcement Leads to Real Savings
The state has also taken aggressive enforcement action. In one case, investigators uncovered a $50 million scheme involving fraudulent billing by sham addiction treatment centers that targeted vulnerable Native Americans. The office was able to stop around $22 million in payouts before funds were lost.
Fraud prevention also intersects with broader financial oversight. Brown’s office reviews insurance rate requests and has denied more than $23 million in proposed increases since 2025, aiming to protect consumers from excessive costs. Still, rising property values, wildfire risk, and more precise AI-driven risk modeling continue to put upward pressure on premiums.
Public Lands
Commissioner Brown also addressed public land concerns in his role on the State Land Board, noting recent action to block American Prairie bison grazing proposals on state trust lands without proper environmental review and decisions tied to funding for public education.
For now, officials say awareness remains the best defense.
“Education is everything,” Brown emphasized. “If we can stop fraud before it happens, we can protect Montanans where it matters most.”
