Forest Lake looks at cryptocurrency ATM registration after series of scams

An elderly Forest Lake man lost almost million after scammers persuaded him to withdraw cash from his bank and deposit it into a cryptocurrency ATM Another resident advised police he lost before he realized he was being scammed Cryptocurrency ATMs like this one at a gas station in Woodbury are sometimes used by scammers as a means of collecting money from casualties who have little hope of ever getting it back John Autey Pioneer Press It s sad They get in a panic they just get tunnel vision and they lose all sense of reasonableness reported Det Nathan Olstad of the Forest Lake Police Department Once the cash is deposited into a cryptocurrency ATM it is almost impossible to recover the funds Olstad stated The Forest Lake City Council is expected to vote on a new ordinance next week that could help others from being scammed The proposed ordinance would require that all cryptocurrency ATMs located within the city be registered City agents already register businesses that pose obvious inhabitants robustness or safety concerns such as liquor stores cannabis shops and tattoo parlors reported City Attorney Amanda Johnson Cryptocurrency ATMs are no different because of the amount of fraud running through the machines the vulnerable population groups targeted and the inability to recover the stolen funds Johnson reported Cryptocurrency ATMs Cryptocurrency ATMs or kiosks resemble conventional ATMs but they focus on cryptocurrency-related transactions People can use them to withdraw funds from their cryptocurrency accounts or purchase more cryptocurrency People use cryptocurrency for a multitude of reasons quick payments to avoid transaction fees that traditional banks charge or because it offers several anonymity according to the Federal Exchange Commission Once you pay with cryptocurrency you can usually only get your money back if the person you paid sends it back according to the FTC In crypto fraud cost Americans an estimated billion according to a description from the Federal Bureau of Investigations Since cryptocurrencies eliminate the need for financial intermediaries to validate and facilitate transactions criminals can exploit these characteristics to endorsement illicit activity such as thefts fraud and money laundering the analysis states Related Articles Minnesota man with white nationalist ties convicted of gun charges feds say -year-old arrested in fatal stabbing of -year-old in St Paul St Paul man gets -year prison sentence for fatal North End shooting Former St Kate s dean pleads guilty to swindling from the St Paul university Brooklyn Park driver charged in Wisconsin crash that killed restaurant owner David Burley The proposed Forest Lake ordinance would require owners of businesses where cryptocurrency ATMs are located to register each machine with the city complete an application pay a fee and provide written confirmation from the Forest Lake Police Department that the cryptocurrency ATM operator has had no more than two instances of substantiated fraud as determined by the FLPD involving any kiosk owned or operated by that kiosk operator within the city in the past six months according to the proposed ordinance Basically if you ve been behaving badly you don t get to play here Johnson declared As long as you re keeping it clean fine Other proposed requirements for registration the posting of a city-provided sign warning of the danger for fraud and scams the installation of a dedicated closed-circuit camera positioned as required by police agreeing to provide video footage to the police department within hours of request and passing compliance checks In addition if a business has had a previous registration denied suspended or revoked the owner of the business may not apply for a new registration for two years Johnson reported The goal of the ordinance is to balance the protection of the society without instituting a ban on the cryptocurrency ATMs Johnson announced If you are not doing something that s harming the people who live or work or play in Forest Lake then you get to continue she explained Tough to swallow In and residents disclosed losing in scams involving cryptocurrency ATMs and the majority of the casualties were elderly Olstad stated It s tough to swallow when you know that money more than likely is not just not-recoverable it s out of the country he mentioned Police have investigated a number of reports involving the Bitcoin Depot ATM at the Holiday Station at Broadway Ave in Forest Lake In one event a Forest Lake Police Department employee spotted a woman about to deposit in cash into the Bitcoin Depot ATM The woman reported police she was working on a laptop computer when a pop-up message appeared stating that she had a virus in her system and to call the provided phone number Scammers convinced the woman that her computer had a virus related to child pornography and persuaded her to download an app onto her cell phone and then log into her U S Bank account They then persuaded her to withdraw all her money from U S Bank go to the Bitcoin Depot ATM and deposit the money into a safekeeping account that they set up for her the reports state Related Articles Stillwater schools making changes mulling cuts to address M shortfall Stillwater skateboard park to be relocated as part of Rec Center project Woodbury launches a new visitors bureau and website Judge dismisses former Washington County deputy s sexual-harassment lawsuit Four Stillwater teachers suspended for cheating on training operation The woman admitted she didn t know how to use the ATM and didn t know the person she was on the phone with the review states She stopped her transaction and went to US Bank to deposit her funds back into her account and then came to the police department to file a description Two other cities in Washington County also are working on measures to protect residents from scams involving cryptocurrency ATMs Like Forest Lake officers in Woodbury are considering an ordinance that would require the registration of the business that hosts the ATMs The Stillwater City Council meanwhile is moving forward with a plan to ban crypto ATMs within city limits The Forest Lake City Council will vote on its proposed ordinance on Monday