City of Lincoln, NE

10/09/2025 | Press release | Distributed by Public on 10/09/2025 12:53

Proposed Ordinance to Protect Older Adults From Cryptocurrency Fraud

Proposed Ordinance to Protect Older Adults From Cryptocurrency Fraud

Published on October 09, 2025

LPD adds position to address cryptocurrency scams

Mayor Leirion Gaylor Baird today said a new City ordinance she is proposing will help prevent older adults from being victims of cryptocurrency fraud. The proposed ordinance would require all businesses operating or providing access to cryptocurrency ATMs to post written notices warning consumers of the potential fraud risks associated with using the machines.

Mayor Gaylor Baird said local data indicate that cryptocurrency ATM fraud disproportionally targets older adults.

"Cryptocurrency scams may be prevalent, but falling prey to them is preventable. This proposed ordinance shows how we can work together locally to safeguard seniors from financial fraud and stop scams before they start," Mayor Leirion Gaylor Baird.

LPD started tracking cases of fraud involving cryptocurrency in 2021, and Police Chief Michon Morrow said 426 cases of cryptocurrency fraud (not limited to cryptocurrency ATM fraud) have been reported in Lincoln since then. She said losses have totaled $11.1 million. The average age of fraud victims in those cases is 56, and 42% of them are age 65 or older.

Morrow announced that LPD has created a new position within its Technical Investigations Unit to specialize in cryptocurrency fraud investigations.

"That new position will be a valuable addition as we prepare to implement the proposed City ordinance," Morrow said. "We will engage directly with local businesses that operate crypto ATMs to provide guidance on posting the required warning signage to their kiosks."

Cryptocurrency kiosks look like traditional ATMs and are typically located in gas stations, convenience and grocery stores, malls and other convenient places. There are about 40 machines in in Lincoln, about 200 in Nebraska and about 45,000 nationwide.

Joining Mayor Gaylor Baird and Morrow at the news conference were Randy Jones, Aging Partners Director and Todd Stubbendieck, AARP Nebraska Director.

Stubbendieck cited 2024 data from the Financial Crimes Enforcement Network showing the FBI received nearly 11,000 complaints related to virtual currency kiosks, a 99% increase in complaints from 2023. The losses totaled more than $246 million - a 31% increase compared to 2023. He said scammers typically impersonate law enforcement, government officials, and trusted businesses or friends. They use fear, urgency, or emotional manipulation to convince victims to deposit cash into cryptocurrency kiosks, where it is converted into virtual funds and sent to fraudulent accounts.

"The new ordinance requiring warning signs on cryptocurrency kiosks in the city of Lincoln gives potential victims a vital moment to pause, reflect, and recognize the red flags of a scam before it's too late. It will also encourage those targeted by these scams to report it to law enforcement, which is essential to helping fight and prevent these scams," Stubbendieck said.

Jones called cryptocurrency fraud targeting older adults a "growing threat" in Lincoln and urged older residents to take time to adequately evaluate calls and emails requesting money transferals.

"Aging Partners is urging everyone - especially older adults, families, and caregivers ­- to pause before you pay, and talk before you transfer. Scammers typically put pressure on their victim to act quickly and threaten them into action. If this happens, you know it's a scam," Jones said.

The ordinance is scheduled for first reading before the City Council October 27. A second reading and public hearing is scheduled for November 3. A third reading and vote on the ordinance is scheduled for November 17.

Pending Council approval, the ordinance would take effect January 16, 2026, to provide time to educate businesses about the new law. LPD and AARP would partner on education efforts, and LPD would print and provide the required signs to businesses that operate cryptocurrency ATMs.

City of Lincoln, NE published this content on October 09, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 09, 2025 at 18:53 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]