To shield senior citizens from cryptocurrency scams, Lincoln’s Mayor Leirion Gaylor Baird is introducing a novel local regulation. The proposed legislation mandates that any business operating or facilitating access to cryptocurrency ATMs must display conspicuous, written alerts. These notices will warn users about the potential for fraudulent activity associated with these machines.
Mayor Gaylor Baird emphasized that data collected locally reveals older residents are disproportionately affected by crypto-related deceit. “While cryptocurrency schemes are unfortunately common, succumbing to them is not inevitable,” she stated. “This proposed local law demonstrates our collaborative commitment to shielding older adults from financial fraud and proactively thwarting scams.”
Police Chief Michon Morrow shared that the Lincoln Police Department (LPD) began monitoring cryptocurrency fraud cases in 2021. Since then, the department has documented 426 instances of fraud, encompassing various types beyond ATM-specific scams. These incidents have resulted in a total loss of $11.1 million. The average age of those victimized is 56, with 42% being 65 years of age or older.
Chief Morrow also announced the creation of a specialized role within LPD’s Technical Investigations Unit. This new position will focus specifically on investigating cryptocurrency fraud. “This addition will greatly enhance our capabilities as we prepare to implement the proposed city regulation,” Morrow explained. “We will directly collaborate with local businesses operating crypto ATMs, offering guidance on the appropriate display of mandatory warning signage on their kiosks.”
Cryptocurrency ATMs resemble traditional ATMs and are often found in locations like gas stations, supermarkets, convenience stores, and shopping malls. There are approximately 40 of these machines within the Lincoln city limits, around 200 across the state of Nebraska, and an estimated 45,000 nationwide.
The proposed ordinance is slated for its first reading before the Lincoln City Council on October 27th. A second reading, accompanied by a public hearing, is scheduled for November 3rd. A final reading and vote on the ordinance are planned for November 17th.
Should the City Council approve the ordinance, it is anticipated to take effect on January 16th.