Authorities Warn of Bitcoin ATM Scams in Massachusetts
Authorities in Massachusetts are sounding the alarm after two locals reportedly fell prey to a fraudulent scheme involving Bitcoin ATMs, losing almost $7,000. The incidents, which occurred on a Monday, involved scammers posing as officials demanding payments for alleged missed jury duty appearances. Sheriff Patrick McDermott of the Norfolk County Sheriff’s Office issued a statement to clarify that his office, along with local police, never engages in such practices.
“If you ever receive a call threatening arrest or claiming you owe money for missed jury duty or other warrants, simply hang up. These are scams,” he stated emphatically.
Details of the Scam
In these two cases, the victims were manipulated into believing they were speaking with sheriff’s personnel and were warned that failure to comply would result in their detention. The callers instructed them to withdraw money from nearby Bitcoin ATMs. The sheriff’s office advised that if anyone receives such calls, they should not only hang up but also report the incident to law enforcement.
Challenges in Recovering Lost Funds
While discussing the possibility of retrieving lost funds, a representative from the sheriff’s office noted the challenges faced with cryptocurrency scams, emphasizing that transactions made in this manner are typically irreversible, as highlighted by the Massachusetts Attorney General’s Office. Data from the FBI’s Internet Crime Report shows that cryptocurrency-related scams involving ATMs reached an alarming total of nearly $247 million in 2024.
Government Response to Cryptocurrency Scams
This dramatic increase prompted a warning from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) in August, which identified Bitcoin ATMs as frequently used tools in scams targeting vulnerable individuals, especially the elderly. In response, some jurisdictions have begun taking action against these cryptocurrency kiosks. For instance, in June, Spokane, Washington, city officials voted unanimously to prohibit the use of virtual currency machines throughout the city. Earlier this year, New Zealand enacted a ban on crypto ATMs and instituted a cap of $5,000 on international cash transfers to combat money laundering. Additionally, Illinois recently introduced the Digital Asset Kiosk Act, which imposes transaction limits on new users and mandates full reimbursements for victims of scams.
