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El Paso City Council weighs new warning rules for cryptocurrency kiosks amid scams (Credit: KFOX14/CBS4)
EL PASO, Texas – (KFOX14/CBS4) —Cryptocurrency kiosks that look like traditional ATMs are increasingly being used in scams, prompting El Paso City Council to consider new warning requirements for machines across the city.
The FBI says scams involving cryptocurrency ATMs are on the rise.
The kiosks allow users to insert cash, convert it into digital currency and send it away within minutes.
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One El Paso resident, who spoke on the condition of anonymity, said they were pressured toward a cryptocurrency kiosk as part of what began as an online job opportunity.
Over time, the person said the situation escalated into requests for money through Cash App and gift cards before they were eventually directed to a kiosk.
“You see the money going in, but you don’t know where it went or who it went to,” the person said.
The person described being guided through the process by the scammer.
“How do you use that? Oh, I’ll give you, you know, whatever number it is that you have to put in. So it’ll go to that account,” the person said.
The FBI says the machines are being used to steal money from victims.
According to the FBI, <a href="https://cryptoz7.com/dormant-bitcoin-whale-moves-383-million-after-more-than-8-years/” title=”Dormant Bitcoin Whale Moves $383 Million After More Than 8 Years”>more than 13,400 cases involving the kiosks were reported across the country last year, resulting in $388 million being lost.
In Texas, almost 1,200 cases were reported to the FBI, the second-highest total of any state.
The FBI said those cases resulted in more than $56 million being lost, the most of any state.
The full report for all states can be found here.
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The El Paso resident said embarrassment can keep victims from reporting what happened.
“I had said I was never going to share this story with anyone,” the person said. “They count on people being embarrassed to come forward and do anything.”
Now, El Paso City Council is looking at possible changes.
An item from City Rep. Chris Canales would direct the city attorney to draft an ordinance requiring physical and digital warnings on the machines.
FULL AGENDA ITEM
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The proposal also includes punishments for businesses that do not add the warnings.
“I think, a label there definitely would help,” the resident said.
The person said they are still dealing with the financial impact.
“To this day, Mark, I’m still behind one month on my mortgage. I still don’t have a vehicle,” the person said.
The item is expected to be discussed during City Council’s next meeting.
Canales did not respond in time for this report.
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