Nazia Saeed
The city of Spokane, Washington, has officially banned all cryptocurrency ATMs within city limits following a rise in fraud cases linked to the machines. The Spokane City Council unanimously passed an ordinance requiring the removal of dozens of kiosks currently located in gas stations and convenience stores.
The new law arrives amid a surge in scams involving Bitcoin ATMs, which prompted city officials to take swift action. This ordinance will protect vulnerable Spokane residents from scams involving virtual currency kiosks, and this the first city in the state to move this legislation forward.
Scammers target seniors, pose as IRS agents
The push for a ban began after Spokane police detective Tim Schwering raised concerns over the growing number of scam cases involving Bitcoin ATMs. Speaking to the City Council, Schwering said victims were being tricked into depositing money into kiosks under false pretenses.
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“I’ve had a number of cases where this money that’s placed in there will end up in places like China, North Korea, Russia,” Schwering said. “What is happening is people are getting scammed.”
Fraudsters reportedly impersonate IRS officials, threatening victims, many of them elderly with jail time unless they deposit funds via crypto ATMs. Schwering called the Council’s move “a vital first step in protecting Spokane residents.”
FBI report: Nearly 11,000 complaints in 2024 alone
A recent report from the FBI revealed a staggering 10,956 crypto ATM-related scam complaints in the US so far in 2024, with total losses reaching $246.7 million. Washington state alone accounted for over $141 million in damages.
Losses have increased nearly 99% compared to 2023. The elderly were disproportionately affected: more than 8,000 of the cases involved victims aged 60 or older, with $107 million in losses from that demographic alone.
“There were cases I was confident I knew the name and bank account, but he was sitting in mainland China, and there was nothing I could do about it,” Schwering said in a briefing earlier this month.
Spokane isn’t alone in its regulatory crackdown. Other cities, including Stillwater, Minnesota, have also banned crypto kiosks as part of a broader effort to combat crypto-related fraud.
