Nebraska Legislation Targets Cryptocurrency Kiosk Fraud with New Consumer Safeguards

The Nebraska Legislature’s Banking, Commerce and Insurance Committee will hold a hearing on a critical bill on Monday, February 3, at 1:30 p.m. CT, aimed at safeguarding residents against the escalating threat of scams involving cryptocurrency kiosks and gift cards.

LB609, introduced by State Senator Eliot Bostar and endorsed by AARP Nebraska, aims to establish regulations for cryptocurrency kiosks, commonly known as digital currency ATMs. The proposed requirements include the licensing of state operators, imposing daily transaction limits, issuing fraud warning notices, providing transactional information receipts, and capping fees.

AARP Nebraska is advocating for these important consumer protections that will deter criminals from leveraging cryptocurrency kiosks. This legislation aims to protect older Nebraskans from losing their hard-earned money, often their life savings, to these intricate scams.

“Cryptocurrency kiosks are relatively new and remain largely unregulated at the state level compared to traditional financial institutions. This lack of regulation has unfortunately allowed criminals to exploit these machines for theft,” stated Jina Ragland, AARP Nebraska’s Associate State Director of Advocacy and Outreach.

In 2023 alone, the FBI received over 5,500 complaints involving cryptocurrency kiosks, with reported losses amounting to over $189 million. Alarmingly, more than 65% of these losses were incurred by individuals aged 60 and above. Overall, the FBI reported $5.6 billion in crypto-fraud losses in the same year.

Nebraskans themselves reported 239 digital currency scam complaints in 2023, totaling approximately $14.6 million in losses. It is believed that actual losses may be even higher, as many victims hesitate to report scams.

AARP Nebraska is joined by a broad range of bill supporters set to testify in favor of LB609 including Nebraska’s Consumer Protections Deputy with the Attorney General’s Office, the Better Business Bureau of the Midwest Plains, the Nebraska Sheriff’s Association, the Lincoln Police Department, and consumers offering personal testimony, among others. To learn more about LB609, visit https://nebraskalegislature.gov/bills/.

Share your travails in order to fight fraud. AARP Nebraska would like to hear from individuals targeted by gift card, cryptocurrency, and other scams. Share your experience.

For fraud-prevention resources, visit the AARP Fraud Watch Network^TM.