New Law Targets Crypto ATM Scams in Nebraska

A new state law aims to regulate an increasingly popular tool for criminals seeking to defraud Nebraska consumers: digital currency kiosks, often called cryptocurrency ATMs.

Signed by the governor in March, the law sets daily transaction limits on the machines, among other measures.

Crypto ATMs—which convert cash into Bitcoin and other digital currencies—can be found in grocery stores, gas stations and other common businesses. Transactions involving the machines are difficult for law enforcement to trace.

The new law, which AARP Nebraska advocated for, caps daily transactions at $2,000 for new crypto ATM customers and $10,500 for existing ones. It also requires crypto ATM operators to be licensed, to post notices warning consumers about the fraud risks associated with using the machines and to provide refunds to customers who report an incident of fraud within 30 days after the transaction.

“The enhanced measures against cryptocurrency theft provide stronger protection for Nebraskans, especially shielding their hard-earned savings from financial exploitation,” says Jina Ragland, AARP Nebraska’s advocacy director.

Last year, the Omaha City Council passed an ordinance requiring individuals or businesses operating or housing a crypto ATM to post warnings. But fraud losses are continuing, says Douglas County Sheriff Aaron Hanson. Statewide regulation will help people avoid being scammed and aid law enforcement in identifying criminals, he says.

In 2024, Hanson’s office investigated $1.4 million in financial crime losses, the majority crypto-related.

“We’re seeing people have to sell their homes and go back to work in their late 70s because their lives are being destroyed by these scammers,” he says.

—David Lewellen