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Committee advances draft ordinance requiring warning signage at cryptocurrency kiosks
Summary
The Public Safety Committee voted to move a draft ordinance to an A session that would require ADA‑compliant warning signage at crypto kiosks, rely on administrative enforcement by code enforcement, and pair the ordinance with outreach and a targeted campaign focused on seniors.
Assistant Chief Jesse Salome told the committee that reports of cryptocurrency kiosk scams rose from 625 to 660 in roughly two months and that victims skew older: nearly 38% of reported victims were age 66 and over, while 88% of cases involved reported financial losses under $50,000. He said the total reported loss from January 2024 to April 13 (the data pull) is about $39,000,000.
Salome outlined a draft city ordinance that would require ADA‑compliant signage developed and issued by SAPD to be posted at kiosk locations; the signage would include messaging encouraging people to call 911. He described an administrative enforcement approach handled by code enforcement that targets property owners or managers (not frontline clerks), with citations processed through administrative hearings.
Salome also described complementary steps: a public awareness campaign targeted to older adults, partnerships with DHS and AARP, and law‑enforcement training led by the Secret Service and local partners to improve investigative capacity. He said staff will pursue legislative strategies — including classifying certain kiosk activity as consumer protection and exploring transaction limits or holds for first‑time users — as a way to make broader prevention measures enforceable.
AARP representative Lisa Rodriguez offered assistance with senior outreach and pointed to national Fraud Watch Network resources; Sheriff Javier Salazar commended the cross‑agency effort and the ongoing Secret Service trainings.
Council members voiced broad support and cited examples from other cities (a referenced Omaha case where officials reported an 80% reduction in losses after a local ordinance). After discussion, the committee made a motion and second to move the draft ordinance to an A session in May; the chair called the voice vote and announced "Motion carries."
Staff said the draft ordinance and accompanying materials (including signage) will be made available to council and that outreach events will begin in July; staff also noted they will continue analyzing the 660 reports to identify geographic hotspots and trends to target prevention events.
