Local law enforcement highlights challenges with tackling cryptocurrency scams

LINCOLN, Neb. (KOLN) – Data from the Lincoln Police Department and the Lancaster County Sheriff’s Office shows that since 2020, people in the area have been scammed out of millions, and many will likely never see that money again.
Since that year, LSO has investigated 18 cases related to some form of cryptocurrency scam. Losses from the scams got as high as $156,000.
“It is very sad,” LSO Chief Deputy Ben Houchin said. “It’s hard to tell them and their reaction is as you can imagine is devastation.”
LPD said they’ve seen multiple victims lose over $1 million in the past five years, with the highest being around $1.5 million.
“I don’t like to give them credit but they are very good at social engineering.” LPD Sgt. Steve Wiese said. “They can get you to start talking and give them information about you that they’ll use later to manipulate you.”
LPD said big losses like these happen more frequently than you’d think.
These cases fall into the ‘fraud category’ in their yearly report, which has seen officers responding to an average of 2,364 calls a year.
Although the numbers don’t show a drastic change from year to year, the methods used to scam do.
Wiese said those methods range from romance scams to a “hey we’ve met before” message on social media.
Law enforcement says fraudsters will try to keep victims on the phone through the whole process, even talking them through how to withdraw money.
Banks around Lincoln said they’re picking up on these signs.
“Our tellers are trained to look out for some red flags that occur. Some of that is paying attention to that transaction and what the member wants, but also paying attention to their attitude when they come in,” Angie Schreiner with Liberty First Credit Union said.
If you do end up getting scammed — while it’s rare the money will come back — speaking up can help officers prevent scams in the future.
Cryptocurrency scam resources:
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