LINCOLN, Neb. (KOLN) — According to the Lincoln Police Department, Lincolnites have lost more than $11 million to scammers since 2021, including one woman who lost more than $250,000 alone earlier this year.
Lincoln Mayor Leirion Gaylor Baird is now hoping a simple sign could be part of the solution, proposing a new law Thursday to help curb these scams, which have increased from 49 cases in 2021 to more than 100 in 2025 so far.
“This new order would require all businesses operating or providing access to a cryptocurrency ATM to post a written notice warning consumers of the potential fraud risks associated with the use of these machines,” Gaylor Baird said. “Cryptocurrency scams may be widespread, but falling prey to them is preventable.”
Cryptocurrency ATMs look like regular ATMs but work differently.
“These machines convert cash into cryptocurrency, which can then be sent to a digital wallet,” said Todd Stubbendieck, director of AARP Nebraska. “Unfortunately, fraudsters have learned to exploit this technology, using it to drain victims’ savings in ways that are often untraceable and irreversible.”
LPD began tracking cryptocurrency fraud cases in 2021, since it recorded 426 cases.
“The average age of victims in our community is 56 years old and 42% of victims are over the age of 65,” said Police Chief Michon Morrow. “In total, these scams resulted in an alarming $11.1 million in losses, again, in our community alone. »
Randy Jones of Lincoln’s Aging Partners Office said once that money was deposited, it was almost impossible to get it back.
“We’ve heard heartbreaking stories of retirees losing their savings or falling victim to what appeared to be a legitimate online offer,” Jones said, adding that what’s more worrying is the sophistication of these scams.
LPD adds a new investigator specializing in crypto scams in January.
The Lancaster County Sheriff’s Office said it has already investigated eight cases this year, reiterating that people should be wary of promises that seem too good to be true.
“Scammers usually pressure the victim to act quickly and threaten them into taking action – and if that happens, it’s a scam,” Jones said. “If someone asks you to send money via Bitcoin or gift cards, it’s a scam. No legitimate agency, business or government office will ever request payment via these instruments.”
The proposal comes months after Gov. Jim Pillen signed LB 609, also known as Auditable Electronic Records Fraud Prevention Actsomething he said would help Nebraska continue to lay the foundation “for a secure and robust crypto industry.”
“It included provisions for new people operating these machines,” Stubbendieck said. “It sets daily transaction limits and even provides refunds for people who are scammed.”
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