Crypto ATM scams rises in Massachusetts, prompting calls for ban

Crypto ATM scams are on the rise in Massachusetts, and businesses and individuals are now complaining ￰0￱ scams have led to losses in millions of dollars, with the scammers now increasing their ￰1￱ that regard, there have been moves to ban the machines, or at least increase oversight to prevent people from falling for these ￰2￱ to reports, one South Hadley business owner put a crypto ATM in his store as a source of passive ￰3￱ get $200 monthly as a rental fee and a cut of the withdrawal fee on each transaction, making it seem like the best revenue stream to offset sales on a bad day or add another stream of ￰4￱ business was going well until one of his employees received a call from a scammer posing as the ￰5￱ scammer demanded that they put $11,000 into the crypto ATM, a scam the employee fell for, and the police have been unable to recover the funds since ￰6￱ ATM scams on the rise in Massachusetts The $11,000 loss by the owner of the business was just one of the many crypto scams that have occurred in the ￰7￱ to authorities , one resident lost $48,000 to scammers, while another one lost $4,900, with authorities saying the funds are usually difficult to locate.

“We’re finding that these are irreversible, untraceable, nearly impossible for us to investigate, but we spent dozens and dozens and dozens of hours investigating,” Police Chief Jennifer Gundersen ￰8￱ ATM scams have grown into a nationwide crisis, with Middlesex County Sheriff Peter Koutoujian telling legislators some weeks back that there has been a surge in crypto ATM scams across the ￰9￱ claimed that overall, there have been more than 11,000 complaints to the FBI in 2024, specifically reporting crimes involving crypto ￰10￱ victims, he claims, lost a combined $247 million, a 99% increase in the number of complaints, and a 31% rise in reported losses from 2024.

Meanwhile, the Joint Committee on Financial Services held a hearing on Tuesday regarding legislation to establish consumer protection guidelines for machines that allow users to buy or sell digital assets for cash (H 1247/S707). Under the guidelines, operators will have to be licensed as money transmitters, register each kiosk with the commissioner of banks, and file quarterly reports with the location of their ￰11￱ addition, the new bill will impose a daily transaction limit of $1,000 per ￰12￱ Hadley wants to ban the machines With the bill still currently making its way through the legislature, Gundersen is proposing an official ban on crypto ATMs in South ￰13￱ on the same ordinance passed in Waltham and Gloucester, business owners would have about 30 days to remove the crypto ATMs before they are met with a $300 fine per ￰14￱ Select Board favored the measure, with moves now in place to vote on it by members at the November 5 special Town Meeting.

Currently, the town has only two businesses with these machines, but Gundersen claims that the new ordinance will prevent the machines from growing. “I spoke today to the Waltham police chief, and they went from four machines to 14 machines in a couple of months,” Gundersen said. “Waltham did report that some of the store owners very likely knew that there was a senior citizen in their store being scammed, but because they were going to get a portion of that money, they actually assisted them with their transaction.” Northwestern Assistant District Attorney Nicholas Atallah said he has received a couple of requests every month from municipal police departments to help them investigate scams involving crypto ￰15￱ the scams, Atallah noted that the criminals usually pretend they are from law enforcement or authorities and ask victims to send money using the ￰16￱ claimed that while it is possible to track these transactions, it remains incredibly ￰17￱ $50 free to trade crypto when you sign up to Bybit now