In Lincoln, Nebraska, a concerning wave of cryptocurrency scams has resulted in victims losing over $11 million since 2021. As these scams proliferate, local authorities are taking significant steps to combat this issue by proposing a new ordinance that aims to inform potential users of cryptocurrency ATMs about the risks associated with these machines.
### The Rise of Cryptocurrency Scams
The Lincoln Police Department (LPD) has been tracking cryptocurrency fraud cases since 2021, documenting 426 instances of fraud as of last year. Chief Michon Morrow highlights that the average age of victims is 56, with a striking 42% of them being over 65. This demographic is particularly vulnerable, often falling prey to sophisticated scams that can seem entirely legitimate.
One distressing narrative comes from a woman who lost over $250,000 earlier this year, underscoring the devastating financial impact of these scams. The alarming increase in cases—rising from 49 in 2021 to over 100 so far in 2025—has prompted Lincoln Mayor Leirion Gaylor Baird to take action. Her proposed ordinance mandates that businesses housing cryptocurrency ATMs prominently display a warning sign informing users of potential fraud risks.
### Understanding Cryptocurrency ATMs
Cryptocurrency ATMs operate differently than traditional cash machines. Rather than dispensing cash, they convert cash into cryptocurrency, which is subsequently sent to a digital wallet. This functionality provides several benefits, such as immediate transactions and privacy; however, it also creates ripe opportunities for scammers.
As noted by Todd Stubbendieck, Director of AARP Nebraska, the anonymity and speed of cryptocurrency transactions make it difficult to track scam operations once funds have been transferred. Once money is deposited into a cryptocurrency ATM, recovery becomes nearly impossible.
### The Role of Local Authorities
In light of the rising threat, the LPD is increasing their resources devoted to investigating cryptocurrency-related scams. A new investigator specializing in this type of fraud will be added in January, reflecting a commitment to tackling the issue head-on. Moreover, the Lancaster County Sheriff’s Office has reported investigating multiple cases this year alone, reinforcing the message that potential victims should approach any “too-good-to-be-true” offers with caution.
Randy Jones from Lincoln’s Aging Partners Office emphasizes the emotional impact of these scams, sharing that many victims have lost life savings. “Scammers typically pressure their victims to act quickly, often threatening them to ensure compliance. If anyone asks you to send money through Bitcoin or gift cards, it’s a scam,” he cautions.
### Recent Legislative Measures
This proposal to enforce warning signs coincides with the recent passage of LB 609, known as the Controllable Electronic Record Fraud Prevention Act, signed into law by Governor Jim Pillen. This legislation aims to create a safer environment for cryptocurrency transactions in Nebraska. It implements daily transaction limits for new users and even offers mechanisms for potential victims to receive refunds if they fall prey to a scam.
### The Path Forward
Mayor Gaylor Baird’s proposed ordinance is just one piece of a multi-faceted approach needed to combat cryptocurrency-related fraud effectively. It aims to educate consumers and raise awareness about the risks associated with these technologies. Public awareness campaigns may also play a crucial role in informing residents, especially older adults, who are most often targeted.
Local community organizations, alongside law enforcement and governmental entities, must collaborate to provide educational resources. Workshops or informational sessions could offer insights into spotting scams, understanding how cryptocurrency ATMs function, and what steps to take if one suspects they’ve been victimized.
### Conclusion
While cryptocurrency scams are a growing concern, proactive measures such as the proposed ordinance in Lincoln are vital in combating this issue. By informing the public about the inherent risks of cryptocurrency ATMs and enhancing law enforcement’s capacity to respond to these crimes, authorities hope to decrease the number of victims in the community.
As the landscape of digital currency continues to evolve, it is crucial for consumers to remain vigilant, informed, and cautious. With education and awareness, residents of Lincoln can better protect themselves from falling prey to the growing wave of crypto scams.
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