Lincoln, Nebraska, is grappling with a pressing issue as scams targeting residents have surged, causing losses exceeding $11 million since 2021. Recent reports from the Lincoln Police Department (LPD) have shed light on the alarming increase in fraudulent activities, with cases escalating from just 49 in 2021 to over 100 already reported in 2025. This rise includes the distressing case of a 75-year-old woman who was swindled out of more than $250,000 in a single incident this year.
In response to these alarming statistics, Lincoln Mayor Leirion Gaylor Baird has proposed a novel ordinance aimed at mitigating the risks associated with cryptocurrency scams. This initiative would mandate businesses that operate cryptocurrency ATMs to prominently display warnings about the potential fraud risks linked to these machines. Mayor Gaylor Baird emphasized, “Cryptocurrency scams may be prevalent, but falling prey to them is preventable.”
Cryptocurrency ATMs, often mistaken for conventional cash dispensers, function quite differently. Todd Stubbendieck, Director of AARP Nebraska, explained that these machines allow users to convert cash into cryptocurrency, which can then be transferred to a digital wallet. Unfortunately, scammers have adeptly leveraged this technology to siphon off victims’ savings in ways that are typically untraceable and irreversible.
Since the LPD began tracking cryptocurrency fraud in 2021, they have recorded a staggering 426 cases. Police Chief Michon Morrow noted a concerning trend: “The average age of victims in our community is 56 years old, with 42% being over 65.” Overall, the reported loss reaches an unsettling $11.1 million solely within Lincoln.
Randy Jones from Lincoln’s Aging Partners Office shared that once money is deposited through these scams, recovery is nearly impossible. He expressed concern about the “heartbreaking stories” of retirees losing their life savings to what may appear as legitimate offers online. The sophistication of these scams continues to rise, posing an increasing threat to the community.
To combat this growing issue, LPD plans to hire a new investigator in January, specifically dedicated to tackling the complexities of cryptocurrency scams. Additionally, the Lancaster County Sheriff’s Office has reported investigating eight cases this year alone, urging residents to remain alert against promises that sound too good to be true.
Jones cautioned, “Scammers often pressure victims to act quickly, threatening them into taking action. If someone asks you to send money via Bitcoin or gift cards, it’s a scam. No legitimate agency, business, or government office will ever request payment through these means.”
This legislative response follows Governor Jim Pillen’s recent signing of LB 609, the Controllable Electronic Record Fraud Prevention Act, which aims to foster a safer environment for cryptocurrency transactions in Nebraska. The act places daily limits on transactions and introduces provisions for refunds to victims of scams, emphasizing the state’s commitment to safeguarding its residents.
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