LINCOLN, Neb. (KLKN) — Mayor Leirion Gaylor Baird on Thursday proposed a new city ordinance to help prevent older adults from falling victim to 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.
According to Gaylor Baird, local data indicates this type of fraud disproportionately targets older adults.
“Cryptocurrency scams may be prevalent, but falling prey to them is preventable,” Gaylor Baird said in a press release. “This proposed ordinance shows how we can work together locally to safeguard seniors from financial fraud and stop scams before they start.”
The Lincoln Police Department started tracking cases of fraud involving cryptocurrency in 2021.
Police Chief Michon Morrow said 426 cases of cryptocurrency 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.
Also on Thursday, 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.
According to the city, there are about 40 ATMs in Lincoln, about 200 in Nebraska and about 45,000 nationwide.
The ordinance is scheduled for its first reading before the city council on Oct. 27. A second reading and public hearing is set for Nov. 3.
A third reading and vote on the ordinance is scheduled for Nov. 17.
Pending council approval, the ordinance would take effect Jan. 16, 2026, to provide time to educate businesses about the new law.