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A 40-year-old Chinese national from Queens, Hong Zhang, was arrested in Lakeville, Minnesota and jailed on $500,000 bail after allegedly collecting $670,000 in stolen cashier's checks from an elderly St. Paul man in a romance or financial fraud scheme. Investigators found over $2 million in uncashed checks, fraudulent identification documents, and multiple cellphones in Zhang's possession and connected residences, suggesting a larger operation involving multiple victims. Zhang was charged with felony theft by swindle and admitted to knowingly collecting cashier's checks not addressed to him while claiming he was picking up misdelivered packages.

Minnesota seniors lost $111.4 million to financial scams in 2025, with common schemes including romance scams, law enforcement impersonation, and extortion. A payment processing industry worker advocates for Congress to pass the TRAPS Act, which would establish a comprehensive federal task force to coordinate with local law enforcement in combating these crimes and recovering victims' funds, particularly those sent overseas.

Minnesotans lose approximately $1.5 billion annually to online scams, according to a Consumer Federation of America report cited at a fraud-prevention seminar hosted by eight credit unions in partnership with law enforcement. The event highlighted common scam tactics including romance scams, fake job offers, cryptocurrency pitches, and impersonation schemes that rely on urgency, fear, and trust to manipulate victims. Experts emphasized that people should not rush into decisions when contacted by suspicious offers and encouraged using the Better Business Bureau's Scam Tracker to research potential fraud before responding.

An online scammer convinced a Connecticut woman named Pam to deposit nearly $150,000 through cryptocurrency ATMs using step-by-step instructions, with the majority of funds becoming unrecoverable once sent through the kiosks. Research shows 93% of crypto ATM transactions are tied to scams, with $389 million lost to such fraud last year, prompting 36 states to ban or restrict the machines. Stillwater, Minnesota became the first U.S. city to ban crypto ATMs in April 2025 after local victims lost tens of thousands of dollars, followed by state-level bans as authorities determined the machines are primarily used for elder fraud.

This article discusses Missouri Lt. Gov. David Wasinger's advocacy for seniors at a national conference, focusing on policy solutions rather than reporting on specific fraud cases. Wasinger highlighted challenges older Americans face including financial exploitation and called for stronger state protections such as tougher penalties for elder abuse and fraud, improved resource access, and centralized service portals modeled after Minnesota's approach.

Cryptocurrency kiosks located in convenience stores and gas stations have become the primary collection point for impersonation scams, with the FBI logging 13,460 complaints in 2025 resulting in approximately $389 million in losses, with roughly two-thirds of victims over age 60. While federal law treats kiosk operators as money services businesses subject to FinCEN registration and anti-money-laundering requirements, state regulation is highly fragmented, ranging from outright bans (Indiana, Tennessee, Minnesota) to licensing regimes with transaction caps and fraud protections to complete absence of oversight (such as in Texas, which leads the nation in reported losses). The regulatory inconsistency means operators face vastly

Minnesota enacted a complete ban on cryptocurrency ATMs effective August 1, 2026, after state officials documented approximately $1 million in scam losses connected to crypto kiosks between 2023 and 2025, with seniors disproportionately targeted through schemes involving manufactured emergencies and pressure to send funds irreversibly. The law required operators to deactivate functioning machines immediately and physically remove them by December 31, 2026, joining Tennessee in adopting an outright ban rather than regulation, as federal data showed Minnesota residents lost over $151 million to crypto-related fraud in 2025 alone.

Minnesota enacted a ban on cryptocurrency ATMs that took effect Saturday after residents reported losing nearly $1 million in scams involving the machines since 2023, with criminals impersonating law enforcement to pressure elderly victims into sending money through the kiosks. In 2025 alone, there were 70 reported cases resulting in over $540,000 in losses with an average loss of nearly $6,800 per transaction, as crypto transactions cannot be reversed once sent to a scammer's digital wallet. The ban requires removal of all existing machines by December 31, addressing a scam disproportionately targeting seniors who are often too embarrassed to report their losses.

Minnesota banned cryptocurrency kiosks after residents lost nearly $1 million to scams between 2023 and 2025, with over 100 complaints filed and an 80-year-old victim losing $80,000 in a single incident. Governor Tim Walz signed the prohibition into law on May 5, 2026, making Minnesota the third state to fully outlaw the machines following Tennessee and Indiana. The scams typically involved fake emergency calls and impersonation schemes that pressured victims to convert cash to cryptocurrency through the kiosks, with funds then disappearing into untraceable wallets.

Minnesota implemented a state ban on cryptocurrency kiosks effective this weekend to combat financial scams that exploit these machines to quickly convert cash into cryptocurrency beyond law enforcement reach. Scammers use the kiosks to pressure victims into rapid transfers, making it difficult to recover stolen funds since cryptocurrency transactions are fast and hard to trace. State officials emphasize that victims should report crimes even after funds are transferred, as recovery tools may still be available despite the sophisticated nature of these schemes.

Texans lost approximately $57 million to cryptocurrency kiosk scams in 2025, primarily targeting elderly victims who are tricked into depositing cash into crypto ATMs to send funds to scammers' wallets. Texas lawmakers plan to ban crypto kiosks entirely, joining Indiana, Tennessee, and Minnesota in prohibiting the machines, as three states have already enacted or scheduled bans to take effect between March and August 2026. The scam typically involves fraudsters contacting victims with urgent stories about unpaid taxes or compromised accounts, directing them to withdraw cash and convert it to cryptocurrency that cannot be recovered once transferred.

Minnesota Attorney General Keith Ellison and a coalition of 50 state attorneys general are urging the Federal Communications Commission to strengthen "Know Your Customer" rules requiring phone companies to verify who is using their networks to prevent scammers from making illegal robocalls. Americans received over 29.6 billion scam robocalls and texts in the past year and lost nearly $2 billion to these scams, with the attorneys general arguing that stronger verification requirements would cut off scammers' access to legitimate phone numbers.

DoorDash drivers in Minnesota are being targeted by scammers who place fake orders, then call posing as company support staff to trick drivers into sharing account information. Once they gain access, the scammers drain the drivers' earnings and savings—in one case stealing over $400 from a driver named Donna Olheiser. To protect yourself, never share account verification information over the phone, and contact DoorDash directly through the official app or website if you have questions about your account or orders.

A caretaker in Minnesota was indicted for Medicaid fraud after allegedly providing no services to an elderly man he was supposed to care for, who died neglected while the fraudster continued billing the government—a case Vice President JD Vance highlighted to demonstrate how fraud harms vulnerable populations, not just taxpayers. The federal government's Task Force to Eliminate Fraud, created in March, is intensifying efforts to prosecute fraud cases across the country and has called for bipartisan cooperation among state attorneys general. Vulnerable Americans, particularly the elderly, should be aware of who is providing their care services and verify that providers are actually delivering promised assistance.

Aimee Bock, the former leader of Minnesota nonprofit Feeding Our Future, was sentenced to nearly 42 years in prison for orchestrating a $250 million COVID-19 fraud scheme—the largest in the country—where she falsely claimed to provide meals to children while actually enriching herself and co-conspirators through kickbacks, fake distribution sites, and luxury purchases. The case affected numerous people across Minnesota's communities and triggered a controversial federal immigration crackdown in the Minneapolis-St. Paul area. To protect yourself, be cautious about charitable organizations, verify their legitimacy through official databases like Charity Navigator or GuideStar, and report suspected fraud to local authorities or the FBI.

Governor Tim Walz signed eleven bills into law that include new protections for renters and homeowners, expanded mental health services in prisons, and a statewide framework to protect older Minnesotans and vulnerable people from financial fraud and exploitation. Key housing reforms address submeter billing practices and homeowners association governance, particularly benefiting renters in shared-meter buildings and first-time Black homeowners who have faced surprise charges and hidden assessments. To protect themselves, renters should review their lease terms carefully regarding digital rent payments and submeter charges, while homeowners should scrutinize HOA documentation and request transparent governance disclosures before purchasing property.

A 79-year-old Bradenton widower lost $31,000 in a romance scam after meeting a person posing as "Julia" on Facebook in 2023, who claimed to be a woman in the UK needing money to relocate to Florida. Benjamin Yakah, who was using stolen photos from an unsuspecting West Virginia woman, was arrested in Minnesota and convicted of grand theft, receiving one year in jail and four years of probation while being ordered to repay the victim. To protect yourself, be cautious of online relationships that quickly involve requests for money, verify identities through video calls, and alert authorities if you suspect you're being scammed—especially if family members express concerns about your online relationships.

A 79-year-old Florida widower lost $31,000 to a romance scammer who posed as a British woman named "Julia" on Facebook for eight months, claiming she needed money to relocate to be with him. Benjamin Yakah from Minnesota was arrested, convicted of grand theft, and sentenced to one year in jail plus probation after police discovered he was using stolen photos and had targeted other victims in multiple states. Police warn that romance scams are among the top five fraud tactics used against Americans, especially seniors, and recommend that older adults seek printed resources about fraud prevention from local authorities.

A Minnesota man named Benjamin Yakaw was convicted of defrauding a Bradenton widower out of $31,000 through a romance scam in which he posed as a British woman named Julia online since 2023. Yakaw will serve one year in jail and must repay the stolen money, and investigators found he had victimized multiple other people as well. Romance scams are among the top fraud tactics targeting seniors, with Bradenton alone reporting $8 million in elder fraud losses last year—so people should be wary of online relationships that quickly request money, especially from strangers claiming to need funds to relocate.

Minnesota lawmakers are advancing legislation that would impose a statewide ban on virtual currency kiosks, a sharp escalation from the state’s regulatory approach just two years ago. The bill, curre...

State adopts rapid injunction law to stop elder scams Depositphotos.com image Dan Emerson//March 2, 2026// In Brief Minnesota becomes the second state to enact a rapid financial exploitation injun...

Minnesota lawmakers have introduced legislation that would impose a complete ban on cryptocurrency kiosks — commonly known as crypto ATMs or Bitcoin ATMs — across the state, marking one of the most ag...

Minnesota lawmakers are advancing a ban on cryptocurrency ATMs, arguing that the machines have become a fast conduit for scammers to siphon money from vulnerable residents, especially seniors. The pro...

Minnesota lawmakers, backed by local police and the Department of Commerce, have introduced legislation to ban crypto ATMs statewide. House File 3642, sponsored by Rep. Erin Koegel, reached the House ...

Crypto ATM Scams Surge in the U.S., Losses Hit $333 Million TL;DR: Losses from crypto ATM fraud in the U.S. reached $333.5 million in 2025, according to a CertiK report. The FBI recorded more than 12...

HF 3642 proposes a Minnesota-wide prohibition on cryptocurrency self-service terminals, often marketed as Bitcoin ATMs, by barring the installation and operation of physical kiosks that convert cash i...

BlockBeats news, on February 27, according to The Block, Minnesota Democratic-Farmer-Labor Representative Erin Koegel recently introduced Bill HF 3642, aiming to ban the placement and operation of cry...

Share: BitcoinWorld Cryptocurrency Kiosks Face Devastating Ban in Minnesota as Elder Fraud Cases Surge to $540,000 ST. PAUL, Minnesota — February 2025 — Minnesota legislators have initiated a groun...

Odaily Planet Daily report: Recently, Minnesota Democratic-Farmer-Labor Party representative Erin Koegel introduced Bill HF 3642, aiming to ban the placement and operation of cryptocurrency ATMs acros...

Minnesota lawmakers are considering a statewide ban on cryptocurrency kiosks after a rise in elder fraud cases. The proposal follows reports of seniors losing large sums through scam-linked transactio...

Minnesota lawmakers are advancing legislation that would prohibit cryptocurrency kiosks across the state. The proposal follows testimony from law enforcement officials who linked the machines to a sur...

A Minnesota woman named Julie Verdugt fell victim to a romance scam on Facebook dating after meeting someone posing as "Bratt Erick Smith," who quickly began requesting money under the guise of needing loans. Scammers often use fake profiles with stolen photos, refuse video calls, and create urgency and secrecy around money requests to manipulate victims. To protect yourself, watch for red flags like requests to keep relationships secret, pressure to act quickly, refusals to video chat, and verify profiles through reverse image searches before sharing personal information or money.

Two Minnesota women of Ecuadorian descent lost money to a scam involving a fake attorney who promised to help get their detained relatives released from ICE custody. The scammer, operating under the name "Inmigrate & Asociados L.LC." with a Florida phone number, collected $1,500 from each victim while providing inconsistent information and fraudulent documents, with the detainees never actually being contacted by the supposed attorney. Potential victims seeking immigration legal assistance should verify an attorney's credentials through official bar associations, avoid paying large upfront fees before services are rendered, and seek help from established nonprofit organizations or pro-bono legal services instead of unknown contacts found on digital flyers.

Two Ecuadorian women in Minnesota say they were scammed while seeking legal help to free family members detained by ICE, paying $1,500 to someone posing as an attorney from "Inmigrate & Asociados L.LC." who contacted them through a digital flyer with a Florida phone number. The scammers targeted vulnerable immigrants desperate to navigate the immigration court system and prevent their loved ones' deportation. To protect yourself, verify attorneys through official state bar associations, be wary of unsolicited legal offers, and never pay upfront fees to unknown legal representatives without confirming their credentials independently.

# Fraud Summary Two Minnesota women lost $1,500 each to someone posing as an immigration attorney after their family members were detained by ICE, according to WCCO reporting. The scammer, operating under the name "Inmigrate & Asociados L.LC." with a Florida phone number, collected payments but provided inconsistent information and forged legal documents with typos and grammatical errors, while the detained relatives were never actually contacted by any attorney. People seeking immigration legal help should verify attorneys through official bar association databases, work with established nonprofits or accredited representatives, and be wary of unsolicited contact or demands for upfront payments without clear documentation and direct communication with the detainee.

# Fraud and Scams Summary Minnesota Aging Pathways is offering a free online presentation on February 11 to educate people about fraud and scams, particularly targeting older adults who are increasingly vulnerable to these schemes. The presentation will cover fraud prevention strategies, how to detect and report fraudulent activity, and ways to protect personal information, with information provided by the Senior Medicare Patrol program. Interested participants can register for the free Zoom class by visiting the Eventbrite link or calling 800-333-2433.

The Trump administration announced plans in January 2026 to create a new DOJ division focused on fighting fraud affecting government programs, businesses, and citizens, led by a presidentially appointed Assistant Attorney General reporting directly to the White House. However, officials have provided conflicting details about the division's structure, resources, and how it will avoid duplicating existing DOJ fraud enforcement efforts, leaving significant questions unanswered. While the administration emphasized recent prosecutions of immigrants accused of benefit fraud in Minnesota, consumers should remain vigilant about fraud targeting them directly and report suspected fraud to the FTC or their local law enforcement.

Minnesota has enacted a new law effective January 1st that strengthens legal protections for older adults who fall victim to scams or financial exploitation by family members or trusted individuals. The law allows vulnerable adults or their representatives to obtain orders of protection that can freeze accounts and cut off contact with perpetrators, giving courts and banks the authority to stop fraud faster than previously possible. Older adults should be aware of this resource if they experience financial scams or suspect exploitation, and financial professionals are now protected when reporting suspected crimes involving vulnerable populations.

The U.S. Justice Department is investigating whether Minnesota political figures, including Governor Tim Walz and Congresswoman Ilhan Omar, received campaign contributions obtained through fraud schemes involving elderly care facilities and charitable organizations. So far, the FBI has found no evidence of campaign violations, though the investigation remains ongoing and has drawn scrutiny as potentially politically motivated. Voters and donors should be cautious about campaign contributions and report any suspicious fundraising activity to election authorities.

# Gold Bar Scam Alert for Minnesota Seniors Scammers in Minnesota are targeting older residents by pressuring them to wire large sums of money (often six figures or more) to purchase gold bars, which are then handed to a "courier" and stolen. These schemes, which may be connected to romance or investment scams, can seem convincing because the gold is purchased from legitimate businesses in the victim's name, but the Minnesota Department of Commerce warns they pose financial and potential physical dangers. To protect yourself, watch for red flags including pressure to act quickly, requests for secrecy, large wire transfers, and any demands involving gold bars.

An estimated $8 billion in government welfare funds was stolen through fraud in Minnesota, highlighting concerns about government inefficiency in administering social programs. The article contrasts government welfare with private charitable organizations like the United Way, which use rigorous donor oversight and volunteer work to ensure 90-95% of donations reach beneficiaries, while government programs allegedly waste significantly more money to fraud and mismanagement. The author argues this raises fundamental questions about whether government should be in the welfare business at all, suggesting private charitable giving with accountability mechanisms is more effective than taxpayer-funded programs.

Following a major federal fraud scandal in Minnesota involving misused nutrition program funds, Ohio's State Auditor Keith Faber announced the state is investigating allegations of fraud in daycare, Medicaid, and elder care programs, while emphasizing that investigations will not involve racial profiling despite online claims targeting Somali-run businesses. Faber stated that fraud investigations occur across all communities in Ohio and are based on specific tips rather than ethnicity or socioeconomic status. If you suspect government fraud, you can report it to Ohio's auditor at 1-866-FRAUDOH or ohioauditor.gov.

# Fraud and Scams Prevention Presentation Minnesota Aging Pathways is offering a free online presentation on February 11, 2026, to help people recognize and prevent fraud and scams, which are increasingly targeting older adults. The two-hour Zoom workshop will cover detection methods, reporting procedures, and protection strategies based on the Senior Medicare Patrol program. Anyone interested can register at the Eventbrite link or by calling 800-333-2433.

Starting January 1, 2026, Minnesota's new law enables courts to quickly intervene and protect vulnerable adults—including seniors and people with disabilities who depend on others for care—from financial exploitation and scams. Instead of waiting weeks or months for emergency conservatorship, victims or trusted contacts can now file a court petition to immediately separate alleged perpetrators from victims and secure or reverse fraudulent transactions, while still allowing victims access to funds for essential living expenses. If you suspect a vulnerable adult is being financially exploited, you can now seek rapid legal protection through the courts rather than waiting for slower traditional remedies.

Minnesota has been investigating a massive taxpayer-funded day-care fraud scheme dating back to at least 2014, with federal authorities recently alleging a staggering $9 billion fraud operation involving fake childcare businesses that billed the state for services never provided. Scammers reportedly smuggled millions of dollars out of the country via airport luggage while also paying kickbacks to parents who enrolled their children in these fraudulent facilities but didn't actually use the services. Taxpayers and families needing legitimate childcare assistance were the primary victims, and authorities recommend remaining vigilant about daycare provider legitimacy and reporting suspicious activity to state officials.

An influencer named Nick Shirley posted a viral video accusing Minnesota Governor Tim Walz of overseeing approximately $110 million in child-care fraud, claiming he found multiple state-funded centers that appeared empty despite receiving millions in taxpayer funding. The video prompted responses from prominent figures including Elon Musk and Republican Rep. Tom Emmer, who called for accountability and investigation. While the allegations are serious, viewers should note that these claims come from an influencer's investigation rather than official findings, and anyone concerned about potential fraud should report it to appropriate state authorities or law enforcement rather than relying solely on social media investigations.

Over $200,000 in cryptocurrency was forfeited by a federal court in a multi-state elder fraud case, with funds seized from scammers who targeted at least four elderly victims (ages 70+) across Louisiana, Texas, and Minnesota. The victims were manipulated through fake emergencies—including threats of arrest and claims of compromised devices—into withdrawing cash and converting it to Bitcoin at ATMs, which they then sent to the scammers' accounts. The recovered funds will now be returned to the victims, and authorities emphasize that seniors should never convert cash to cryptocurrency based on urgent calls or messages, especially those threatening legal consequences or device security issues.

Minnesota Attorney General Keith Ellison faced widespread mockery on social media after posting about his office's fraud-fighting efforts, while a massive $9 billion fraud scandal involving government welfare programs has unfolded in the state under his watch. The scandal, which reportedly involved stolen taxpayer funds meant to help vulnerable populations, prompted critics across the political spectrum to question how Ellison could tout his anti-fraud work while such a large-scale scheme operated relatively unchecked. For consumers, the incident underscores the importance of verifying the legitimacy of utility calls and loan offers independently, and remaining skeptical of unsolicited contacts claiming to represent government or financial institutions.

Scammers have stolen billions of dollars from Minnesota's social welfare programs through elaborate fraud schemes, including the notorious "Feeding Our Future" case that diverted $250 million in pandemic relief funds meant for vulnerable populations like children with autism, people with disabilities, and those seeking addiction treatment. The fraudsters—many with no connection to Minnesota—created fake community organizations and submitted inflated invoices that state officials continued to pay without proper oversight, while some criminals then transferred stolen funds internationally through weak money transfer regulations. Residents should be vigilant about verifying that social service organizations are legitimate and report suspicious billing or program activity to federal authorities, while policymakers need stronger oversight of government spending and stricter compliance rules on financial transfers.

Minnesota Attorney General Keith Ellison is warning residents about cryptocurrency ATM scams, where fraudsters trick victims into sending untraceable money through these machines, with losses skyrocketing from $12 million in 2020 to $250 million in the first half of 2025—far exceeding typical scam losses. Victims should be especially wary if a government agency requests payment via cryptocurrency ATM, as this is a major red flag for fraud. If scammed, report it immediately to local law enforcement or the Minnesota Department of Commerce, as refunds may be available if reported within 72 hours of account creation.