Agenda - Council Work Session - 10/28/2025

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CITY OF FOREST LAKE WASHINGTON COUNTY, MINNESOTA ORDINANCE NO. 750 AN ORDINANCE ENACTING FOREST LAKE CITY CODE TITLE XI, CHAPTER 121, VIRTUAL CURRENCY KIOSKS The City Council of the City of Forest Lake does ordain: SECTION 1. ENACTMENT. Forest Lake City Code Chapter 121 is hereby enacted as follows: §121.01 Purpose, Intent, and Authority (A) Purpose. The City recognizes that: (1) Virtual currency kiosks ("Kiosks") are a significant instrument in fraud and scams. In 2023, the Federal Bureau of Investigation ("FBI") reported over $189 million in losses due to fraud via Kiosks. While some legitimate transactions may take place via the Kiosks, the machines have quickly become a preferred payment method for scammers. (2) Criminals manipulate, intimidate and/or threaten their victims into using the Kiosks to send funds. According to the FBI's Internet Crime Complaint Center, criminals give detailed instructions to individuals, including how to withdraw cash from their bank, how to locate a kiosk, and how to deposit and send funds using the kiosk. Criminals instill a sense of urgency and isolation in their victims. In some of the scams, criminals falsely represent themselves as government officials or law enforcement officers. (3) The elderly are particularly susceptible to the frauds perpetrated via the Kiosks. Per FBI statistics, these scams overwhelmingly affect adults over age 60, with the losses reported for those over age 60 representing $124 million of the $189 million losses reported in 2023. (4) In the City of Forest Lake alone, the Forest Lake Police Department ("FLPD") reports losses of approximately $300,000 from Kiosk related fraud from 2023 through 2024. (5) The scams often require that the victim deposit large sums of cash into the Kiosk, meaning that in addition to the Kiosk scam, there is a greater general risk to public safety due to individuals carrying large amounts of cash to the Kiosks.