Lincoln sees fewer crypto scam reports but higher losses in 2025

The Lincoln Police Department reported a slight decline in cryptocurrency scam cases last year, yet victims suffered greater financial damage overall. Reports dropped from 133 in 2024 to 127 in 2025, but total losses rose to $4.4 million from $3.1 million. Average losses per victim reached nearly $35,000.

In Lincoln, Nebraska, the police department has noted a downward trend in cryptocurrency scam reports over the past two years. Data shows 133 cases in 2024, decreasing to 127 in 2025. Despite fewer incidents, the financial impact intensified, with losses climbing from $3.1 million to $4.4 million. Each affected individual lost an average of almost $35,000 in 2025.

November and December marked the year's lowest reporting periods, with just five cases each. This followed the city's initiative to address the problem through a new ordinance. Signed in November by Mayor Leirion Gaylor Baird, the measure requires warnings at every crypto ATM in Lincoln, with a placement deadline of December 24.

The Lincoln Police Department attributes the reduced reports to heightened awareness. "This shows that awareness works. The more we talk about scams, the better we protect our hard-earned money," the department stated. These efforts appear to be curbing the number of victims, even as the scams grow more lucrative for perpetrators.

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Illustration of crypto crime surge: hackers using AI to steal $17B in scams per Chainalysis report, with charts, bitcoins, and law enforcement seizures.
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Chainalysis 2026 Report: $17 Billion in 2025 Crypto Scams Amid Surging AI Fraud and Hacks

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The Chainalysis 2026 Crypto Crime Report, published January 13, 2026, reveals at least $14 billion stolen in 2025 scams—projected to reach $17 billion—driven by a 1,400% surge in AI-boosted impersonation tactics, amid broader losses including $4 billion from hacks per PeckShield and $154 billion in total illicit volumes linked to nation-state actors.

Scammers have stolen more than $4.6 million from residents in Wyoming's three largest cities—Cheyenne, Gillette, and Sheridan—primarily via cryptocurrency ATMs, with $3 million lost in Gillette alone. Operating often from abroad, fraudsters target older victims using familiar tactics like impersonating authorities. Law enforcement reports highlight the untraceable nature of these machines, while education campaigns and proposed regulations seek to stem losses.

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Building on similar efforts in other Nebraska cities like Lincoln, Grand Island has enforced a new ordinance requiring cryptocurrency kiosks and ATMs to display fraud warning signs, protecting residents from scams. Effective since November 20, it includes $500 daily penalties and features collaboration with AARP volunteers.

The cryptocurrency industry experienced a significant reduction in hack-related losses last December, totaling $76 million, according to blockchain security firm PeckShield. This marks a 60% decrease from November's $194.2 million in damages. Despite the improvement, 26 major exploits still occurred, highlighting ongoing vulnerabilities.

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Arizona Attorney General Kris Mayes has warned residents about a rise in cryptocurrency ATM scams, which cost victims more than $170 million last year. She launched a new fraud complaint form to help those affected report incidents quickly. The scams typically involve fraudsters directing people to deposit cash into bitcoin kiosks found at everyday locations like gas stations.

Washington legislators' push for stricter rules on cryptocurrency kiosks ended without passage this session. Senate Bill 5280 sought to curb fraud linked to these machines but stalled in a House committee on February 25. The measure aimed to protect consumers amid rising scam losses reported by the FBI.

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A school resource officer in Lunenburg, Massachusetts, has helped recover over $100,000 stolen in a cryptocurrency scam, marking the state's first seizure of Tether funds by law enforcement. The investigation began with a local victim's report of a $13,000 loss at a Bitcoin ATM. At least 13 victims stand to benefit from the recovered assets.

 

 

 

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