A new Minnesota law looks to shutdown a scam pipeline.
Sister Agnes Foley of St. Paul says a would-be-scammer told her to pay for computer repairs by visiting a crypto kiosk.She says something felt off about the conversation, so she returned home instead.
"And I called the computer help person that we have. He had words for the man still on the iPhone," says Foley.
Thankfully, she was spared from spending possibly thousands of dollars. But that experience sticks with her.
"I still don't feel safe," she says. "I turn off my computer each time I'm not using it, even if it's for a very short period of time."
State investigators say Minnesotans lost nearly $1 million through these scams over a two-year period, prompting a statewide ban of crypto kiosks starting August 1.
BCA superintendent Drew Evans says while fraud won't be eliminated, it's going to help.
"Removing cryptocurrency kiosks closes an important pathway that allows them to receive funds rapidly, with limited opportunity for intervention," Evans explains.
Starting this Saturday, crypto kiosks must be taken offline as part of a new law targeting what's referred to as a major scam pipeline.
Minnesota Department of Commerce Assistant Commissioner of enforcement Sara Payne says cryptocurrency scams happen quickly, with victims almost instantly losing their money.
"Once it leaves, not just Minnesota but the United States, it's very challenging for law enforcement to get the money back," explains Payne. "And I think anonymity is a really big part of it as well. So, it just is very, very challenging."
Over that two-year period in Minnesota, 134 complaints involving cryptocurrency kiosks were investigated. Evans says scammers play on fear, often leading victims to make a costly mistake.
"This law eliminates that mechanism to steal from Minnesotans," Evans adds. "Criminals unfortunately have exploited this, and this is one meaningful step towards protecting Minnesotans, giving them one less place where a moment of fear can become a life-changing financial loss."
Kiosks must be physically removed from stores by December 31.
