Over the past year, the EPD Financial Crimes Unit has worked closely with Evansville City Councilor Mary Allen and the AARP to draft a city ordinance to address the growing problem of Evansville citizens falling victim to scams that utilize “Bitcoin ATMs” (a.k.a. Virtual Currency Kiosks) as a way of sending funds to scammers. The occurrences of these incidents in Evansville have almost doubled every year. In the past 12 months, victims have lost more than $400,000, with the average victim losing about $13,000
There are about 70 Bitcoin ATMs in Evansville, mostly in gas stations and stores. Scammers use these machines because money sent through them is quick, anonymous, and impossible to get back. These machines often charge the user a 10-50% fee or markup of the total transaction. Many consumers are scam victims who are not aware of the cost and don’t realize they are sending money to a scammer.
This week, the Evansville City Council voted to approve the new rule (Evansville Municipal Code – Chapter 8.45). It will take effect once the mayor signs it. Penalties for breaking the rule range from $100 to $500. The rule requires kiosk operators to:
• Display signage on the machines that warns users about being a victim of a scam
• Operate machines that provide the user with a physical receipt
• Maintain a customer service line with a visible number on the machine
• Maintain a dedicated line of communication for law enforcement
are a victim of a scam, please contact EPD by dialing 812-436-7956 or 911.
