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Police warn of crypto-ATM scams; council weighs signage, registration and legal limits
Summary
Police briefed council on a rise in scams using cryptocurrency ATMs; staff and the city attorney discussed options ranging from warning signage and registration to state-level lobbying, while acknowledging legal and enforcement limits under federal law and case law.
Police Chief Jason Fields told council that cryptocurrency (Bitcoin) ATMs have proliferated nationally and locally and that the city currently lists 34 machines within Fort Myers. "State of Florida's got about a little over 2,500, and city of Fort Myers has 34 right now, and this is within the city limits," Fields said, adding that the machines are often used by criminals to receive funds from scams and that transaction fees at some ATMs range from 5 to 25 percent.
Council members and staff discussed several possible responses: warning signage and public education; a local registration or licensing program linked to business licensing; coordination with AARP and other advocates pursuing model ordinances; and whether seizure of machines is legally feasible. City Attorney Grama noted existing federal rules and said machines may be subject to Bank Secrecy Act reporting thresholds and that some jurisdictions are experimenting with licensing approaches. Staff cautioned that outright bans raise commerce-clause and other legal issues and recommended pursuing low-cost options (signage, targeted registration, PSAs) while continuing to coordinate with state and federal partners and report back with recommended ordinance language or a countywide approach.
