South Jordan police urge action on crypto kiosks after frauds target elderly

South Jordan police told the City Council at a study session that cryptocurrency kiosks in local stores are being used by scammers to extract large cash sums from residents, particularly older adults, and asked the council for direction on local regulation.

Lieutenant Adrian Montelongo, investigations division commander, said the department has identified five kiosks in the city and described recurring scams that coax victims to withdraw bank funds and deposit cash into kiosks. "We do have 5, in our city," Montelongo said, and described three common scams: customer‑support impersonations, impersonations of government officials and malware or ransomware prompts that lead victims to follow fraudulent instructions.

Montelongo presented department statistics covering a recent 15‑month span: $110,000 in losses by residents scammed at kiosks inside the city, $122,000 by residents lured to kiosks outside the city, and many other reported attempts. He recounted several older victims who lost tens of thousands of dollars after being pressured by scammers, including one case with a roughly $21,000 withdrawal and another where $25,000 was moved to an ATM under duress.

The lieutenant noted a wave of state legislation that took effect May 6 and that could reduce some harms: per the new law, kiosks have daily transfer caps (initial transactions capped at $2,000 in the first three days and $5,000 thereafter) and maximum fees are limited (Montelongo said the prior reported 20–40% fees are now capped and will not exceed 3%). "That is a new cap there," he said, and added that the Department of Commerce will play a role in supervising compliance.

Montelongo urged the council to consider local options because kiosks are a tool for fraudsters. "Kinda good," he said of potential local action that would create time and distance for a potential victim to reconsider or contact family. Council members discussed multiple options, from stronger local disclosure and prominent warnings at kiosks to an outright ban modeled on other municipalities that have acted. One council member said a ban would be "making it harder for fraud to occur," while another council member urged staff to return with an ordinance and intermediate options.

Police recommended continued victim education and outreach—particularly to elderly residents—and stronger coordination with state and federal partners. "We have some really good relationships with the attorney general's office here in Utah," Montelongo said, noting the department has used blockchain investigation tools and occasionally recovered funds when transactions were traceable.

Council members expressed support for staff research and asked the police and city attorney to bring back recommended language that could range from required warnings and enforcement mechanisms to a local ban. The study session concluded with staff agreeing to return with regulatory options for council consideration in the regular meeting cycle.