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Spokane City Council eyes banning crypto kiosks, citing devastating fraud to vulnerable residents
Spokane City Council eyes banning crypto kiosks, citing devastating fraud to vulnerable residents

Yahoo

time03-06-2025

  • Business
  • Yahoo

Spokane City Council eyes banning crypto kiosks, citing devastating fraud to vulnerable residents

Jun. 2—Spokane may soon outlaw kiosks that allow people to purchase cryptocurrencies without going to well-known digital marketplaces — and according to law enforcement, have become a tool for scammers. The Spokane City Council introduced the ordinance, sponsored by Councilman Paul Dillon and City Council President Betsy Wilkerson, on Monday, after the state Legislature failed to advance additional regulation on the kiosks, increasingly common in grocery and convenience stores, earlier this year. The scam involving gift cards may be better known to most. A scammer posing as an IRS agent, the Secret Service, a tech support agent or even a relative calls a victim who is typically older or unfamiliar with technology and tells them to transfer funds immediately. But rather than going through a bank where there may be some protections, the victim is instructed to go to a grocery store, purchase thousands of dollars of gift cards and give the scammer the codes on the back. At that point, the money is gone for good. The same scam is now increasingly applied to cryptocurrency kiosks, substituting Amazon gift cards for Bitcoin, according to Spokane Police Department Detective Timothy Schwering. "They would give the story that 'We're with the Secret Service, you might be in a money -laundering ring, and we need to make sure your money's safe,'" Schwering said. "They get people alone, maybe they're older, and they get confused and panic." Schwering said he's aware of at least three suicides in Spokane County related to these scams. "You have people who are putting tens of thousands, hundreds of thousands into these machines and wiping out their life savings," he said. And unlike gift cards, Schwering argues that the kiosks have little legitimate use, particularly given the prevalence of digital marketplaces to purchase cryptocurrencies. He's not opposed to cryptocurrencies themselves, praising the technology behind them, but believes the kiosks are particularly prone to fraud and abuse. "People in the industry will say this is a great way for people to use crypto, but if you put money in the crypto kiosks, the fees can be around 20% — Cryptobase on my phone, it's pennies for the same transaction," Schwering said. "It's hard to say people are using these for legitimate business." The FBI's Internet Crime Complaint Center received more than 5,500 complaints of fraud related to cryptocurrency kiosks in 2023 alone, with losses of over $189 million. Most of those complaints involved a caller impersonating tech support, impersonating a government official, or a confidence or romance scheme. A 2023 FBI report claims that cryptocurrency is exploited by criminals because of the difficulty of following the funds after transactions that are also quick and irrevocable. "There were cases I was confident I knew the name and bank account, but he was sitting in mainland China, and there was nothing I could do about it," Schwering said. Spokane wouldn't be the first to ban the kiosks. The city of Stillwater, Minnesota, barred them in April, and several other Minnesota cities are considering similar regulations. As cryptocurrencies become more prevalent, the kiosks can now be found in reputable businesses around Spokane, such as Safeway and Walgreens. "When I first started doing this, there wasn't a ton of these kiosks around town," Schwering said. "There's hundreds now. I get calls on these things daily, people putting thousands and thousands into these things and losing it all." Schwering and Dillon had testified to the state legislature in favor of regulations that would limit daily transactions and fees, but while the legislation got out of committee, it wasn't taken up for a vote before the end of this year's legislative session. The proposal to act appears to have widespread support on the City Council, with Councilman Jonathan Bingle praising it at an April committee meeting for positioning Spokane to be on the "cutting edge" of the issue in Washington state. The ordinance is currently scheduled for a vote at the June 16 council meeting.

Driver who crashed into River Park Square cited on suspicion of reckless driving as repairs begin
Driver who crashed into River Park Square cited on suspicion of reckless driving as repairs begin

Yahoo

time17-05-2025

  • Yahoo

Driver who crashed into River Park Square cited on suspicion of reckless driving as repairs begin

May 16—The Mustang driver who crashed into the front of River Park Square Thursday night was cited for reckless driving, police say. Police responded to the entrance of River Park Square off Main Street around 8:55 p.m. Thursday to a red Ford Mustang that had shattered the building's windows and destroyed the outer brick wall. The driver, later identified as 20-year-old Omar Khairi, was taken to a local hospital for an injury evaluation, according to a news release from the Spokane Police Department. It was found the driver was traveling down Main at a high rate of speed, hit a parked car and then swerved to avoid a person riding a Lime scooter, said Spokane police spokesperson, Officer Dan Strassenberg. Khairi showed no signs of impairment at the time of the crash, he said. Construction crews were observed fixing the outside of the mall Friday morning.

Mustang crashes through front of River Park Square
Mustang crashes through front of River Park Square

Yahoo

time16-05-2025

  • Yahoo

Mustang crashes through front of River Park Square

May 15—A driver of a Ford Mustang slammed into the front of the well-known River Park Square mall entrance, shattering glass windows and leaving bricks strewn on the ground Thursday night in downtown Spokane. The driver of the newer-model Mustang was injured and taken to the hospital, according to Spokane Police Department Lt. Jay Kernkamp. No one else was in the vehicle. Kernkamp said police received reports of the Mustang driver traveling on Main Avenue before colliding with a vehicle, losing control and crashing into the mall. Kernkamp said at the time he didn't know whether alcohol or drugs were factors in the crash. No one else was injured. The Mustang's front end was significantly damaged. The PulsePoint application indicated the crash happened about 8:55 p.m.

Man stabbed near Riverfront Park, suspect at large
Man stabbed near Riverfront Park, suspect at large

Yahoo

time10-05-2025

  • Yahoo

Man stabbed near Riverfront Park, suspect at large

May 9—A man was stabbed in the arm Friday morning near Riverfront Park, and police are looking for a suspect. Officers responded shortly before 10:30 a.m. to the area of 300 N. Post St. in downtown Spokane for a report of a stabbing, according to the Spokane Police Department Facebook page. Officers found a man with a stab wound to the arm. He was taken to a hospital with injuries that were not life-threatening, the social media post stated. Police believe the stabbing happened near the Spokane River but the exact location was unknown. Police said there is no threat to the public because the involved parties know each other. Anyone with information to aid police in its investigation is asked to contact Crime Check at (509) 456-2233 and reference incident No. 2025-20091134.

Man stabbed near Riverfront Park, suspect at large
Man stabbed near Riverfront Park, suspect at large

Yahoo

time10-05-2025

  • Yahoo

Man stabbed near Riverfront Park, suspect at large

May 9—A man was stabbed in the arm Friday morning near Riverfront Park, and police are looking for a suspect. Officers responded shortly before 10:30 a.m. to the area of 300 N. Post St. in downtown Spokane for a report of a stabbing, according to the Spokane Police Department Facebook page. Officers found a man with a stab wound to the arm. He was taken to a hospital with injuries that were not life-threatening, the social media post stated. Police believe the stabbing happened near the Spokane River but the exact location was unknown. Police said there is no threat to the public because the involved parties know each other. Anyone with information to aid police in its investigation is asked to contact Crime Check at (509) 456-2233 and reference incident No. 2025-20091134.

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