Council Bluffs Battles $460,000 Crypto Fraud Scam Over 18 Months

The Council Bluffs City Council has introduced a new regulation aimed at tackling the increasing problem of cryptocurrency ATM frauds. This rule mandates prominent cautionary notices on every machine. The objective is to inform residents about potential hazards prior to them executing non-reversible deals.

Over the last eighteen months, more than $460,000 has reportedly vanished due to frauds connected to crypto ATMs in Council Bluffs. According to Detective Vogel from the Council Bluffs Police Department, the majority of victims targeted by these swindlers have been senior citizens. An elderly lady alone lost upwards of $100,000, and a local enterprise suffered a loss of $50,000 as well.

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According to the new regulation, every cryptocurrency ATM within city limits must now show a cautionary label alerting customers to potential frauds and stressing thatcrypto transactions cannot be reversed.

As stated by authorities, fraudsters usually start by making telephone calls, frequently pretending to be from governmental organizations or utility companies to scare recipients into taking immediate steps.

Vogel clarified that they are specifically targeting senior citizens. Once they reach seniors over the phone, they instill great fear about potentially losing all of their savings. "The victims are informed that using certain devices will secure their funds," he continued, "but afterward, their money vanishes."

Local officials are cautioning citizens that official organizations would never request cryptocurrency payments. "Our city government will not issue invoices for services like trash collection or demands from the police or fire department asking you to deposit funds into a cryptocurrency kiosk," stated Councilman Steve Gorman.

Although the missing funds cannot be retrieved, authorities indicate that the transactions remain trackable.

"All of this money can be tracked. While it cannot be recovered, it is still traceable. I have managed to track all the funds abroad," Vogel pointed out.

Following the enactment of the ordinance, the count of cryptocurrency ATMs in Council Bluffs has decreased from 21 to 17 units. Several bigger stores, like Fareway Meat Market, have chosen to take out these machines completely.

Vogel mentioned, "The larger retail chains noticed that customers were being deceived by these machines. They decided to remove them," he stated.

Councilman Steve Gorman stressed that the ordinance does not aim to target cryptocurrencies.

I believe Bitcoin has arrived. It seems like something certain individuals would choose to utilize," Gorman stated. "We're merely pointing out that there's a potential for scams and emphasizing that the city will never issue an invoice requiring payment via Bitcoin.

The warning from Council Bluffs Detective Vogel is straightforward: "If Bitcoin is unfamiliar to you, do not invest your money in the machine."

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