Stillwater police have issued warnings about scams involving cryptocurrency machines, wherein residents are manipulated to withdraw cash for digital transactions. Chief Brian Mueller reported significant financial losses, indicating that many scams originate from outside the USA. Authorities emphasize vigilance and community education to prevent exploitation, particularly among high-risk groups.
The City of Stillwater has raised concerns about cryptocurrency scams where residents are coerced into making transactions through cryptocurrency machines. Chief of Police Brian Mueller acknowledged the distress caused, noting that community members are often misled to withdraw large amounts of cash for digital transactions.
Cryptocurrency machines allow users to convert cash into digital currency, which is then transferred to a specified account. The police have highlighted cases involving threats regarding loved ones’ safety or legal troubles, pushing individuals to act quickly and deposit money into these machines.
In 2023 alone, Stillwater officials noted over 30 reports of crypto-related scams, causing total losses of $156,442, with $73,092 from deposits into local crypto ATMs. One notable incident involved a woman directed by a scammer to put $20,000 cash into an Athena Bitcoin ATM, intercepted by an observant gas station clerk who alerted authorities.
The gas station owner emphasised staff training to identify suspicious transactions and engage customers with cash. However, many scam perpetrators operate internationally, complicating recovery efforts for the funds once deposited.
Residents are encouraged to contact Stillwater police at (651) 351-4900 if they receive suspicious communications demanding payment. Police also underline that these scams often target vulnerable individuals, including the elderly.
Additionally, Minnesota legislation mandates the registration of cryptocurrency kiosks to enhance consumer protection, with 230 machines currently licensed across the state. Reports of fraud-related consumer losses have totalled $437,983, with approximately $29,894 recovered since August.
