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Committee advances draft ordinance to curb cryptocurrency ATM fraud targeting seniors
Summary
Staff and ARP presented a draft ordinance and outreach plan to reduce losses from scams at crypto ATMs and kiosks, citing hundreds of recent reports and large estimated losses; committee moved the draft forward for council consideration in May.
Assistant staff presented a draft city ordinance and coordinated enforcement approach aimed at preventing fraud at cryptocurrency ATMs and kiosks, emphasizing outreach to older adults. The presenter described multi‑agency training with SAPD, the sheriff’s office and federal partners and said the draft ordinance contains two elements: a public‑safety response component for officers and an administrative compliance track to cite owners/managers for failures to meet accessibility or consumer‑protection standards.
ARP representatives and staff described the scope of reported fraud, noting several hundred reports in recent months and significant aggregate losses reported in 2024–25 (ARP cited figures in the tens of millions). “El propósito de este borrador de la ordenanza es la respuesta de seguridad pública,” a staff presenter said, stressing the draft’s aim to enable SAPD officers to intervene at incidents and to create an administrative process for compliance and fines when appropriate.
Councilmembers cited an example from Omaha where a similar approach reportedly reduced incidents by about 80% and asked staff to ensure enforcement targets operators and not frontline cashiers. Members also asked for mapping to identify hot‑spot ATMs to prioritize outreach and enforcement. ARP offered national victim‑reporting resources and said it can support community education at senior centers and other venues.
After discussion, a motion to refer the draft ordinance to the city council for placement on the May agenda was made and the committee approved the motion. Staff said the ordinance would be developed in coordination with SAPD and other partners and that continued public outreach and training are planned before formal council consideration.
