Lincoln Proposes New Measures to Combat Crypto ATM Scams
Amid rising concerns over cryptocurrency fraud, Lincoln’s city leadership is taking steps to protect its residents. Mayor Leirion Gaylor Baird has unveiled a proposed ordinance aimed at mitigating the risks associated with cryptocurrency ATMs scattered across the city.
The ordinance, if passed, would mandate that owners of Bitcoin and other cryptocurrency ATMs display a clear warning sign. This sign, to be designed and distributed by local law enforcement, will alert users to potential scams. Approximately 40 of these kiosks in Lincoln would need to comply with the new regulation.
Statistics from the Lincoln Police Department underscore the urgency of this measure. Since 2021, fraud cases involving cryptocurrency have surged, more than doubling in number. Additionally, the FBI reported significant financial losses linked to these machines, amounting to $124.3 million in 2024, with senior citizens disproportionately affected.
In support of the ordinance, Aging Partners Director Randy Jones and AARP Nebraska Director Todd Stubbendieck joined Gaylor Baird. “Cryptocurrency scams may be prevalent, but falling prey to them is preventable,” said Gaylor Baird. “This proposed ordinance shows how we can work together locally to safeguard seniors from financial fraud and stop scams before they start.”
Lincoln Police Chief Michon Morrow emphasized the collaborative effort with local businesses. “While it’s clear that cryptocurrency fraud is on the rise, so is our resolve to stop it,” she stated. The police department plans to work closely with business owners to ensure the warning signs are properly displayed.
Efforts to curb cryptocurrency fraud extend beyond Lincoln. Last year, the FBI initiated a campaign to raise awareness about such scams, and the Douglas County Sheriff’s Office set up a scam tips hotline. Furthermore, Nebraska Attorney General Mike Hilgers issued a consumer alert highlighting the risks.
The state has also taken legislative action. The Nebraska Legislature recently passed the Controllable Electronic Record Fraud Prevention Act, introducing licensing and regulation for cryptocurrency kiosks and setting limits on transactions and fees.
Stubbendieck, an advocate for both state and local measures, commented on the synergy between the legislation and the proposed ordinance. “I think it works hand in hand with the state legislation and gives local communities sort of a stake in the game,” he said.
Lincoln is not alone in this initiative. Omaha implemented a similar law last October.
The proposed ordinance in Lincoln is still being finalized but is scheduled for a first reading by the City Council on October 27, followed by a public hearing. A final vote is anticipated on November 17, with the ordinance set to take effect on January 16, pending approval.
