Crypto News: Crypto ATM Scams Surge Across Massachusetts, Triggering Calls for Ban

Crypto ATM scams surge across Massachusetts, prompting lawmakers to propose bans, $1,000 transaction limits, and stricter oversight to protect small businesses.

Crypto ATM scams are now surging across Massachusetts. Businesses and local individuals are complaining bitterly about massive losses. As a result, millions of dollars have already been taken away from victims by these scams. Scammers continue to expand their scope of operation daily. Therefore, local officials are moving to outlaw the machines entirely.

Surge in Crypto ATM Scams Triggers Calls for Statewide Ban

One South Hadley business owner gave us a case study. One way he did this was by installing a crypto ATM in his store for passive income. Specifically, he was to receive a $200 per month rental fee. He also received a share of the withdrawal fee of each transaction. This revenue appeared to be a steady new source of revenue for the store. However, an employee received a bogus call later on.

Related Reading: All Top 15 Users Have Been Victims As Crypto ATM Scams in Tasmania Cost Rack Up $2.5 Million In Thefts | Live Bitcoin News

A scammer pretended to be the owner in this call. The caller demanded that the employee deposit $11,000 in the ATM. Unfortunately, the employee was easily convinced by the highly convincing scam. Police have been unable to recover the lost funds since. This tragic incident is a call for attention to the financial risk to small businesses.

The problem has become a serious issue across the nation. Middlesex County Sheriff Peter Koutoujian told state legislators. He said there has been a recent increase in these scams around the country. What’s on top of it is that the FBI had about 11,000 complaints in 2024.

Victims lost a combined total of $247 million last year. Indeed, this is a 99% rise in the number of complaints compared to 2023 figures. It also represents a 31% increase in financial losses to the victims who were reported..

The Joint Committee on Financial Services conducted a very important hearing recently. The hearing was concerned with new consumer protection legislation. The bill is geared toward regulating machines that trade crypto for cash. Therefore, full money transmitter licenses would be required from the operator. They would also have to register each kiosk with the bank commissioner.

Massachusetts Bill Seeks $1,000 Daily Limit on Crypto ATM Transactions

Operators need to fill out quarterly reports on all locations of the kiosk. Furthermore, the bill would impose an output strict limit of $1,000 per day per customer. This is a lower limit to minimize the financial loss of individual scams. The legislation does not provide for prohibition but a framework for regulation.

The South Hadley Select Board was addressed by Police Chief Jennifer Gundersen. She explained the issues facing law enforcement. More specifically, these transactions are irreversible and untraceable. Consequently, they are almost impossible for the police to properly investigate.

While the statewide bills are being considered by the Legislature, local action is proposed. Chief Gundersen recommends that South Hadley pass a townwide ordinance. This ordinance would put a ban on all cryptocurrency ATMs right off. This action follows similar initiatives passed in Waltham and Gloucester.

The proposed town ordinance features a definite timeline. Business owners would be given 30 days to get rid of the cryptocurrency ATM. After that, the town would impose a $300 per day fine for every violation. This is a punitive fine that will promote quick compliance from local businesses.

The post Crypto News: Crypto ATM Scams Surge Across Massachusetts, Triggering Calls for Ban appeared first on Live Bitcoin News.