‘$460,000 scammed in past year and a half’: Council fights off crypto fraud with sticker warning
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COUNCIL BLUFFS, Iowa (KETV) — A new ordinance passed by the Council Bluffs City Council is targeting the growing issue of cryptocurrency ATM scams by requiring clear warning labels on all machines. The goal is to ensure citizens are aware of the risks before making irreversible transactions.
In just the past year and a half, over $460,000 has been reported lost to scams involving cryptocurrency ATMs in Council Bluffs. Detective Vogel with the Council Bluffs Police Department says scammers are primarily targeting older residents. One woman lost over $100,000 and a business in town was scammed out of $50,000.
As part of the ordinance, all crypto ATMs in town are now required to display a warning sticker that notifies users about scams and emphasizes the irreversible nature of crypto transactions.
According to officials, scammers typically initiate contact by phone, often impersonating government agencies or utility providers to frighten victims into urgent action.
“They’re targeting the elderly. And when they get them on the phone, they get them very scared that they’re going to lose all their money,” Vogel explained. “They’re told they have to use these machines to keep their accounts safe—and then their money disappears.”
City leaders are reminding residents that legitimate agencies will never ask for crypto payments. “The city will never send you a bill for garbage pickup or from the police or fire department, asking you to put money into a crypto machine,” said Councilman Steve Gorman.
While the lost funds can’t be recovered, investigators say the transactions are still traceable.
“All this money is traced. It’s not recoverable, but it’s traceable. And I have traced all the money overseas,” Vogel noted.
Since the implementation of the ordinance, the number of cryptocurrency ATMs in Council Bluffs has already dropped—from 21 machines to 17. Some larger retailers, such as Fareway Meat Market, have opted to remove the machines entirely.
“The bigger chain stores realized, hey, people are getting scammed by these machines. Let’s get rid of them,” Vogel said.
Councilman Steve Gorman emphasized that the ordinance is not an attack on cryptocurrency. “
I think Bitcoin is here. I think it’s a product that some people want to use,” Gorman said. “All we’re saying is be aware that there is a possibility of fraud and know that the city will never send you a bill and ask you to pay by Bitcoin.”
The message from Council Bluffs Detective Vogel is clear: “If you don’t know anything about Bitcoin, don’t put your money into the machine”.
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