Spokane County Takes Action Against Crypto Kiosks to Protect Seniors
In a move aimed at tackling scams that predominantly affect older adults, the Spokane County Commission has decided to take action against “crypto kiosks” or “Bitcoin ATMs” located in various stores across the county.
On Tuesday, the board passed an ordinance that prohibits businesses from hosting these kiosks on their premises. The ordinance requires any existing kiosks to be removed within 60 days, or they will be classified as a nuisance. The decision was unanimous.
These kiosks allow users to exchange cash or bank details for cryptocurrency, which is then transferred to a digital wallet. Spokane County Prosecutor Preston McCollam noted during the county meeting that scammers often exploit these machines to defraud unsuspecting victims.
According to McCollam, the typical scam begins with the fraudsters making cold calls to their victims, posing as law enforcement officials or bankers, and employing fear tactics to rush the victims to a kiosk, commonly found in convenience or grocery stores. Once there, victims enter cash or their banking information, unwittingly sending money to the scammer’s digital wallet as cryptocurrency.
“Once it’s deposited, it’s untraceable,” McCollam explained. “It goes directly into the fraudster’s account, and it’s nearly impossible to track from that point on.”
FBI statistics indicate that scammers stole $389 million from these kiosks in 2021, with victims over the age of 50 accounting for more than $300 million of that total.
By making these kiosks less accessible, McCollam suggested that potential victims would now have to travel further if coerced into using one. This added “time and space” could give them a better chance to reach out to family or law enforcement for assistance, potentially preventing fraud.
“Having these kiosks spread across the county puts residents at risk, as there’s little time for them to reconsider before falling victim to these scams,” McCollam said.
The new ordinance specifically pertains to unincorporated areas of Spokane County. Other local municipalities, like Spokane, Spokane Valley, and Airway Heights, have already implemented similar regulations.
