For Fraud Awareness Week, Essex County District Attorney Paul F. Tucker is sharing some warning signs and tips with Essex County residents related to an alarming rise in scams involving cryptocurrency ATM kiosks. Fraud Awareness Week began in 2000 and is an international effort to minimize the impact of fraud by promoting anti-fraud education.
Tucker said fraudsters are increasingly turning to crypto kiosks — sometimes referred to as Bitcoin ATMs, though many machines offer transactions in cryptocurrency other than Bitcoin — which are typically located in high-traffic venues like convenience stores and which look similar to traditional ATM machines. Crypto-ATMs may be attractive to scammers because they are powered by technology that makes it almost impossible for law enforcement to claw funds back in contrast to a more standard banking transaction.
So far this year, Massachusetts residents have reported losses of more than $77 million involving these kiosks, including at least $11 million in Essex County. Tucker noted that the pretenses scammers will offer to convince victims to send them crypto vary, from fixing a billing or banking issue to helping a grandchild in need to assisting a governmental agency, just to name a few.
“Please beware if someone you do not know asks you to convert cash at a crypto-ATM kiosk,” Tucker said. “No legitimate entity will demand crypto as the only way to resolve a concern or ask you to keep a transaction secret. Slow down and call your local police to check.”
Tucker added that bystanders — from bank tellers and store clerks to passersby — can also play a role in disrupting potential scams by being mindful of warning signs, such as an elderly or older person withdrawing or depositing large sums of cash while on the phone.
“If you see someone in a situation that you suspect might be a scam in process, please speak up,” Tucker said. “All of us can play a role in keeping our family, friends, and neighbors free from fraud.”
