Evansville authorities have reported a concerning rise in “Bitcoin ATM” scams, with incidents nearly doubling compared to the previous year. Victims in the area have faced significant financial losses, exceeding $400,000 over the past year, with the average individual losing around $13,000.
In response to this growing issue, the Evansville Police Department’s Financial Crimes Unit has collaborated with City Councilor Mary Allen and the AARP to formulate a new city ordinance designed to enhance consumer protection and crack down on scams.
Currently, there are approximately 70 Bitcoin ATMs, also referred to as Virtual Currency Kiosks, scattered throughout Evansville, predominantly located in gas stations and retail stores. Scammers exploit these machines due to the rapid, anonymous transactions they facilitate, which are impossible to reverse once completed. Users are often charged hefty fees, ranging from 10% to 50% of the total transaction amount.
In a recent meeting, the Evansville City Council approved the proposed ordinance, which will go into effect upon the mayor’s signature. The new regulations impose various requirements on kiosk operators, including:
- Signage: Operators must clearly display warnings about potential scams on the machines.
- Receipts: Each transaction must generate a physical receipt for the user.
- Customer Service: A visible customer service number must be provided on the machines.
- Communication with Law Enforcement: A dedicated line of communication must be established for law enforcement agencies.
These measures aim to mirror protections implemented by other cities facing similar challenges with cryptocurrency-related criminal activities. Authorities emphasize that if individuals believe they have fallen victim to a scam, they should contact the Evansville Police Department by calling 812-436-7956 or dial 911 for immediate assistance.
