Enid police report spike in Bitcoin-ATM fraud, urge temporary ban while law and case law develop
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Summary
Detective Jones told the commission Enid has seen about 16 kiosk-related fraud cases this year totaling roughly $261,637, many involving older victims; he recommended a temporary ban while legal remedies and case law catch up, and staff said state statutes and new licensing rules complicate local bans.
Detective Jones, speaking for local law enforcement, described a sharp increase in cryptocurrency-kiosk fraud in Enid and urged the commission to consider a temporary ban on the machines until state regulations and case law better protect victims. "In Enid alone this year, we've seen 16 cases involving these kiosks. Twelve of these victims were over the age of 70, and altogether, these frauds have cost us about $261,637," Detective Jones said.
Jones explained common tactics used by scammers—urgent phone calls, false claims about compromised bank accounts and directions to convert cash to cryptocurrency at nearby kiosks—and noted that scammers often provide victims a wallet they control, causing victims to lose funds instantly. He described kiosk fees of roughly 20–25 percent and said kiosks are commonly hosted in convenience stores and some dispensaries.
Commissioners pressed on whether banning kiosks would prevent losses or shift scams to other channels. Jones said a ban could reduce the scam vector tied to proximity to machines but acknowledged scammers may find alternate methods. Commissioners also asked about examples elsewhere; Jones cited recent bans in Spokane, Washington, and another city he referenced as Stillwater, Michigan.
Unidentified city staff (first speaking at SEG 874) said they are still researching legal authority and case law. Staff noted Oklahoma statutes mentioned in the packet (referred to in the meeting as Title 75A and senate bill 1083) place regulatory duties at the state level and include licensing requirements for kiosk operators, including a state licensing and bond requirement. Staff described additional state license conditions (a bond and fraud-prevention plans) and said some enforcement will occur through the Banking Department and the attorney general’s office.
Commissioners discussed non-legislative steps as well: public-service announcements, partnering with an elder-abuse task force that includes banks and nonprofits, signage or on-machine warnings, and outreach to the banking association. The police and staff said they will continue to compile local data, coordinate with state regulators and the Banking Department, and pursue public education to reduce victimization.
The commission did not vote on a ban at the study session but directed staff to continue researching legal authority, licensing lists and enforcement options, and to coordinate public education efforts.