Massachusetts Grapples with $247M Crypto ATM Scam Surge

Crypto ATM scams have become a pressing issue in Massachusetts, with reported losses skyrocketing to $247 million in 2024—nearly double the previous year's figures. Fraudsters are exploiting the anonymity of cryptocurrency transactions, posing as trusted figures to manipulate victims into transferring funds through crypto ATMs.

Local businesses and residents are bearing the brunt. One South Hadley entrepreneur lost $11,000 after a scammer impersonated him to deceive an employee. Another victim was defrauded of $48,000. Law enforcement faces significant challenges, as these transactions are often irreversible and difficult to trace. "We're finding that these are nearly impossible for us to investigate," said Police Chief Jennifer Gundersen.

The scale of the problem is staggering. Middlesex County Sheriff Peter Koutoujian revealed the FBI received approximately 11,000 complaints related to crypto kiosks this year alone. In response, Massachusetts lawmakers are considering new consumer protection measures to curb the rising tide of fraud.