New law credited for helping Wichita-area woman recover money lost in cryptocurrency scam

WICHITA, Kan. (KWCH) - The Sedgwick County District Attorney’s Office is crediting a new consumer protection law in Kansas for helping a Wichita-area woman recover money she lost on a cryptocurrency scam.

The DA’s office said the woman contacted the Wichita Police Department after being targeted via a scam involving a reported outstanding warrant.

“In this type of scheme, a caller falsely claims to be a law enforcement officer or court official and tells the victim that a warrant has been issued for their arrest. The caller then instructs the victim to avoid the warrant by making an immediate payment, often through a cryptocurrency ATM,” the Sedgwick County DA’s Office explained.

A WPD sergeant advised the woman to contact the cryptocurrency ATM operator directly, report the scam and request a refund. The response is where a new Kansas law, House Bill 2591, helped the woman.

“The operator initially agreed to issue a refund, but only in the form of cryptocurrency, an option that offered little practical help to a victim who had no familiarity with digital currency or how to access it. Facing that obstacle, the victim considered giving up on recovering her money,” the DA’s office said.

The WPD sergeant encouraged her not to give up on pursuing a refund and the Sedgwick County District Attorney Consumer Protection Division took up the case under the recently enacted legislation “that gives the office new means to help scam victims recover funds from cryptocurrency ATM operators.”