Nebraska Controllable Electronic Record Fraud Prevention Act

The statute focuses on “controllable electronic record” kiosks, commonly described by the Department as crypto ATMs. It defines a kiosk as an electronic terminal used to facilitate exchanges of controllable electronic records for money, bank credit or other controllable electronic records. It also defines a kiosk operator to include a person operating a kiosk in Nebraska, or a person owning, operating or managing a money transmission kiosk in Nebraska through which controllable electronic record business activity is offered.

The central licensing rule is direct: a controllable electronic record kiosk operator may not conduct or hold itself out as able to conduct covered kiosk transactions unless it has a license under the Nebraska Money Transmitters Act. Operators must report each kiosk as an authorized delegate and also submit associated controllable electronic record addresses to the Department within 45 days after each calendar quarter.

• Regulator: Nebraska Department of Banking and Finance.
• Primary activity: controllable electronic record kiosk transactions in Nebraska.
• Licensing channel: Nebraska Money Transmitters Act and NMLS reporting.
• Consumer-protection tools: warnings, receipts, transaction limits, fee cap, refunds and customer-service requirements.

The act requires clear, conspicuous and readable disclosures in the customer’s chosen language, with customer acknowledgement. Operators must separately provide a prominent warning that criminals may exploit kiosks for illicit activity, and the statute sets model warning language addressing common scam patterns and the irreversible nature of kiosk transactions.

Required disclosures also include material risks, whether controllable electronic records are legal tender or backed by the U.S. government, potential processing delays, volatility, exchange rates, fees, transaction amounts, refund policies, operator contact information and fraud-reporting information. Receipts must include transaction details such as type, value, date, time, transaction hash, applicable controllable electronic record addresses, all fees and the exchange rate.

Kiosk operators must use blockchain analytics software to help prevent transfers to wallets known to be affiliated with fraudulent activity at the time of a transaction. They must also maintain a written anti-fraud policy covering risk identification, controls, responsibility allocation and periodic review. The law separately requires a qualified full-time compliance officer, and that officer may not own more than 20% of the operator.

The refund provisions distinguish new customers from existing customers. If a fraudulently induced transaction is reported to the operator and a law-enforcement or government agency within 30 days, a new customer is entitled to a full refund including fees, while an existing customer is entitled to a refund of fees. Daily transaction limits are $2,000 for new customers and $10,500 for existing customers. Aggregate fees and charges may not exceed 18% of the U.S.-dollar value involved in the transaction.

The act also requires live customer service at least Monday through Friday from 7:00 a.m. to 9:00 p.m. through a toll-free number displayed on the kiosk or kiosk screen. Operators must maintain a dedicated law-enforcement contact method, monitor it at least daily and display it on the operator’s website.

As of June 5, 2026, the act is in force. A 2026 amendment, LB 717, was approved by the governor on Feb. 25, 2026 and is scheduled to become effective on July 18, 2026. The Department says LB 717 will expand the definition of “controllable electronic record kiosk transaction” and change references to the Nebraska Money Transmitters Act. The chaptered LB 717 text adds certain stored-value-account funding used to purchase controllable electronic records to the kiosk-transaction definition.