Crypto Scams: How Some States Are Fighting Back
Cryptocurrency has become big news, but it’s not all good. Scams are a big problem, costing people lots of money. Some states are now trying to stop these scams. Let’s find out more.
What Are Crypto Scams?
Crypto scams can be sneaky. One way scammers trick people is by using special machines called kiosks. These kiosks let you buy or sell cryptocurrency, like ATMs, but they don’t have the same safety rules as banks. In 2023, over 5,500 people reported being tricked by these kiosks, losing more than $189 million[1]!
Nebraska’s New Law
Nebraska has passed a new law to protect people from crypto scams. Here’s what it does:
- Licensing: Only trusted people can run these kiosks now[1].
- Daily Limits: You can’t take out too much money in one day to stop big thefts[1].
- Warnings: The kiosk will tell you about scams to keep you safe[1].
- Receipts: You’ll get a receipt to help catch scammers[1].
- Fair Fees: No more sneaky charges[1].
- Refunds: If you’re scammed, you’ll get your money back[1].
New York’s Plan
New York also wants to stop crypto scams. They want to make sure people know who’s behind these coins and stop sneaky tricks like “rug pulls”[4].
Making Crypto Safer
Nebraska and New York are showing others how to protect people from crypto scams. As crypto grows, we need rules to keep it safe and fair. That’s how we can trust digital money.
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