The city of Gladstone, Missouri, has passed an ordinance mandating warning signs on cryptocurrency ATMs to combat rising scam losses. Businesses must now display signs asking customers if they are being scammed, following reports of significant financial harm to residents. Clay County officials are pushing similar measures across the region.
In Gladstone, Missouri, the city council has approved an ordinance requiring businesses to post prominent warning signs on cryptocurrency ATMs. The signs pose the question, “Are you being scammed?” to alert users to potential fraud. This measure comes in response to increasing incidents of scams involving these kiosks, where fraudsters pressure victims to deposit cash.
Gladstone Police Chief Fred Farris explained the common tactics: scammers reach out via phone, text, or pop-up ads, threatening utility shutoffs, arrest warrants, or demands for past-due bills. “People get text messages, they get phone calls saying that they owe money, their utilities are going to get shut off,” Farris said. One local resident fell victim to this scheme, losing nearly $100,000 by depositing funds into a machine. “We had a victim with a significant loss, almost $100,000, that they were convinced into depositing into one of these machines,” Farris added.
The ordinance also mandates that businesses obtain permits before installing crypto ATMs, aiding police in tracking the city's nine machines and ensuring compliance with signage requirements. Enforcement starts next week, beginning with warnings and escalating to fines of up to $500 per day for non-compliance. Farris emphasized the role of business owners: “If they see somebody that’s struggling with their machine and they’re hearing them talking to somebody, they need to be getting on to the person going, ‘Hang up the phone. You’re getting scammed.’”
Clay County Prosecuting Attorney Zachary Thompson is extending these efforts countywide, with his office placing warning signs for the past six weeks. Over 150 crypto scam cases have been reported in the county, yet none have led to charges due to lack of suspect information. “We didn’t get a single referral on those, which means we were unable to develop a single suspect on all 150 of those,” Thompson stated. Just before his interview, Thompson learned of another case involving a $40,000 loss. However, the signs have proven effective, halting at least one attempted transaction. “He was putting money into the machine, and he saw our sign, and he did the right thing. He took a moment, he hung up on the scammer, called us,” Thompson recounted.