Grand Island City Lawyer Kari Fisk addresses City Council Nov. 4 about amending a city ordinance to help prevent cryptocurrency fraud. (Carol Bryant, Central Nebraska As we speak)
GRAND ISLAND – The Grand Island City Council unanimously authorized Nov. 4 making a change to a city ordinance concerning cryptocurrency kiosks.
The ordinance now requires signage close to machines to help prevent fraud.
A cryptocurrency machine permits individuals to purchase or promote cryptocurrencies comparable to Bitcoin utilizing money or a debit card.
A memo from Mayor Roger Steele and City Lawyer Kari Fisk despatched to City Council stated, “Most individuals are being scammed by way of cryptocurrency kiosk schemes, and extra victims are dropping cash, together with proper right here in Nebraska. Particularly susceptible are older adults. In accordance to the Federal Commerce Fee, individuals aged 60 and over had been greater than thrice as seemingly as youthful adults to report a loss utilizing a cryptocurrency kiosk. These kiosks have more and more facilitated elder fraud, particularly amongst tech/buyer assist scams, authorities impersonation, romance scams, emergency/person-in-need scams, and lottery/sweepstakes scams.”
“In its most elementary type, cryptocurrency kiosks are a easy and acquainted means for people to convent flat foreign money (like {dollars}, Euros, or kilos) into cryptocurrency. Cryptocurrency kiosks are unstaffed machines which appear to be conventional ATM financial institution machines. They’re usually present in comfort shops, fuel stations, and different excessive visitors areas. As a substitute of distributing money, they settle for money in alternate for cryptocurrency. Criminals are recognized to give detailed directions to their victims, together with how to withdraw money from their financial institution, find a kiosk, after which use the kiosk to deposit the money to purchase and ship digital foreign money to the criminals in irreversible transfers,” the memo stated.
“As we speak, there are greater than 45,000 cryptocurrency kiosks nationwide. In Nebraska, over 200 of those machines can be found throughout the state, and roughly 30 can be found in Grand Island,” the memo stated.
“This ordinance is designed to create necessary, proactive measures to defend our residents from the rising risk of fraud related to these machines,” the memo stated.
“A method to mitigate these crimes is to require clear, seen, and standardized fraud prevention indicators (together with contact info for the kiosks operation and make contact with info to report fraud to legislation enforcement) on all machines working throughout the city limits of Grand Island,” the memo stated.
The ordinance enhances state laws (LB609) and offers native management to the group to take significant and quick motion towards fraud.
Representatives from AARP, an area financial institution, and the Grand Island Police Division spoke on the Nov. 4 City Council assembly.
Jina Ragland is affiliate state director for advocacy and outreach for AARP Nebraska.
She stated that AARP has been working to educate shoppers about cryptocurrency kiosks. She stated that robust safety is required to prevent fraud. She stated that victims of fraud expertise “monetary devastation.” The fraud can have an effect on job losses and financial influences.
She stated that AARP is absolutely dedicated to work with the city of Grand Island concerning points with cryptocurrency kiosks. AARP has volunteers out there to help with training efforts concerning cryptocurrency.
Ragland stated that individuals ought to “cease and pause” earlier than contemplating being concerned in a cryptocurrency state of affairs. A financial institution or legislation enforcement may very well be contacted concerning the state of affairs.
Joyce Beck of Grand Island is state president of AARP Nebraska.
She gave an instance of cryptocurrency fraud conditions. First, a grandfather was contacted concerning investing in cryptocurrency to help a grandson who was having issues. The grandfather was informed that if he spoke to anybody in regards to the state of affairs, his grandson may very well be harmed.
Steve Kunzman of Grand Island is chairman of Residence Federal Financial institution. He stated that he and the banking business assist LB609, which regulates cryptocurrency kiosks. He stated that for individuals contacted in fraud conditions, “This panic they’ve could be very actual.”
Jim Duering is Division Chief for Operations for the Grand Island Police Division. He stated that the common age of an individual who’s a sufferer of cryptocurrency fraud is 62. He gave an instance of an individual who was instructed to withdraw $2,300 in money in $100 quantities and go to a cryptocurrency cellphone location. The particular person realized he was concerned in a rip-off state of affairs and hung up the cellphone. Duering stated that there have been 25 cryptocurrency complaints final 12 months.
City Council Member Ryan O’Neill stated he works within the expertise area. He stated that signage “is a extremely vital safeguard.”
City Council Member Chuck Haase stated he has been contacted thrice concerning cryptocurrency conditions. He stated that the signage is only one extra means to try to cease cryptocurrency fraud.
City Council President advised having the indicators in English and Spanish.
City Council Member Mark Stelk stated, “Why ought to we would like to even enable these machines. I believe we must always simply outlaw them.”
In different motion, the City Council acknowledged Grand Island Northwest Excessive Faculty’s state champion softball workforce. Athletes and coaches obtained certificates and Grand Island pins.
