LINCOLN, Neb. (KOLN) — According to the Lincoln Police Department, Lincolnites have lost more than $11 million to scammers since 2021 — including a woman who lost more than $250,000 alone earlier this year.
Now Lincoln Mayor Leirion Gaylor Baird is hoping a simple sign might 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 ordinance 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 using these machines,” Gaylor Baird said. “Cryptocurrency scams may be prevalent, but falling prey to them is preventable.”
“Cryptocurrency scams may be prevalent, but falling prey to them is preventable.”
Cryptocurrency ATMs look like ordinary ATMs but operate differently.
“These machines convert cash into cryptocurrency, which then can be sent to a digital wallet,” said AARP Nebraska Director Todd Stubbendieck. “Unfortunately, scammers have learned to exploit this technology, using it to drain victims’ savings in ways that are often untraceable and irreversible.”
LPD started tracking instances of cryptocurrency fraud in 2021, since logging 426 cases.
“The average age of those victims in our community is 56 years old, and 42% of victims are over 65,” said Police Chief Michon Morrow. “Altogether, these scams have resulted in an alarming $11.1 million in losses, again, just in our community.”
One of more than two dozen cryptocurrency ATMs in Lincoln(10/11 News)
Randy Jones with the Lincoln’s Aging Partners Office said once this money is deposited, it’s nearly impossible to recover.
“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 what is most concerning is how sophisticated these scams have become.
LPD is adding a new investigator in January who will specialize in crypto scams.
The Lancaster County Sheriff’s Office said they’ve investigated eight cases this year already, reiterating people should be wary of promises that seem too good to be true.
“Scammers will typically put pressure on the victim to act quickly and threaten them into action — and if that happens, it’s a scam,” Jones said. “If someone asks you to send money through Bitcoin or gift cards, it’s a scam. No legitimate agency, business, or government office will ever request payment via these instruments.”
A chart showing fraud cases involving Bitcoin or Cryptocurrency in Lincoln, courtesy of the Lincoln Police Department(Lincoln Police Department)
The proposal comes a few months after Governor Jim Pillen signed LB 609 into law, also known as the Controllable Electronic Record Fraud Prevention Act, something he said would help Nebraska continue to lay the groundwork “for a safe and robust crypto industry.”
“It included provisions related to new folks who use these machines,” Stubbendieck said. “It’s set daily transaction limits, and it also even provides refunds for folks if they’ve been a victim of a scam.”
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