San Antonio City Council working on bitcoin scam sign ordinance

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The San Antonio City Council has begun work on an ordinance to combat a growing number of bitcoin machine scams.

Bexar County Sheriff Javier Salazar brought the scams to the attention of the San Antonio City Council after learning of one related to jury duty.

He said scammers posing as law enforcement would use calls or texts to warn victims, they could be arrested for missing jury duty unless they pay a fine at a local bitcoin machine. In reality, the victims were tricked into buying bitcoin.

The sheriff suggested the council approve a sign ordinance, warning of scams, to be posted near those machines. He recommended the council model an ordinance enacted in Omaha, Nebraska that has proven to be very effective.

Assistant San Antonio Police Chief Jesse Salame told the council that in the course of nearly a year, 625 police reports were filed related to all sorts of cases involving bitcoin.

"Our older adults are always hit the hardest when it relates to this type of scam," he said. "A lot of the reported losses are under $50,000, which is substantial. We had a few cases that were multimillion dollar losses for the victims."

District 9 City Councilwoman Misty Spears was among the members of the entire city council to show support for quick action on such an ordinance, especially on behalf of senior citizens.

"It's infuriating because these are the kind of financial losses that seniors cannot absorb," she said. "They don't have a future earning capacity. And how do they get that money back? And it's often very, very challenging and often they are on fixed incomes."

Sheriff Salazar also told the council that an inmate run print shop at the county jail could print up the warning signs.

"We have a number of job training programs in the jail and one of them is we're teaching and certifying some of the inmates on how to run the equipment that makes these signs," he said. "So, these signs will eventually be made free of cost to taxpayers, which is a great thing."

The council's public safety committee will review ordinance language on April 21 before sending it before the full council in May.

The ordinance is likely to see wording added to place warning signs at senior centers, malls, parks, and libraries. The signs will likely be accompanied by a general public awareness campaign and partnerships with local financial institutions.

Other cryptocurrency scams asked victims to send cryptocurrency to repair computer viruses or by claiming the only way to protect their money is by making deposits to cryptocurrency ATMs.

Other signs of scammers include being asked to lie to your bank or keep the reason for a cryptocurrency secret. Others involve online relationships where someone asks you to send them cryptocurrency purchased at an ATM or promises for high returns on a cryptocurrency investment.

Someone posing as law enforcement and asking for cryptocurrency for bail for a relative is another common technique.

In fact, no law enforcement agency will ever solicit payment of fines on the phone. Anyone who receives such a phone call should hang up immediately and contact law enforcement.

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