atm

Key Highlights:

🔹 Crypto ATM scams are exploding in Massachusetts, causing millions in losses

🔹 Victims are losing tens of thousands of dollars, with police struggling to trace funds

🔹 South Hadley officials are proposing a full ban on crypto ATMs

Crypto ATM scams have become a growing crisis in Massachusetts, as both business owners and residents report a wave of sophisticated fraud. Police say the scams have already caused millions of dollars in damages, prompting local authorities to consider banning the machines—or at least enforcing tighter oversight.

How the Scams Work
One notable case involved a South Hadley shop owner who installed a crypto ATM as a side income. He earned $200 a month in rent plus a percentage of each transaction — a seemingly easy way to boost daily sales.
That changed when one of his employees received a fake phone call from a scammer pretending to be the owner. The scammer instructed the employee to deposit $11,000 into the crypto ATM — money that instantly vanished. Police have been unable to recover the funds.
Authorities say this is just one of many incidents. One resident lost $48,000, another $4,900, with most cases being nearly impossible to trace.

“These transactions are irreversible and practically untraceable,” said Police Chief Jennifer Gundersen. “We spend dozens of hours investigating, often without success.”

A Nationwide Problem
The problem extends far beyond Massachusetts. Middlesex County Sheriff Peter Koutoujian told lawmakers that in 2024, the FBI received over 11,000 complaints related to crypto ATM fraud.

Victims collectively lost $247 million, marking a 99% increase in complaints and a 31% rise in total losses from the previous year.
A new bill, H 1247/S707, now before the state legislature, seeks to tighten consumer protection for crypto ATM users. The proposed law would:

🔹 Require operators to obtain money transmitter licenses

🔹 Mandate registration of every machine with the state banking commissioner

🔹 Enforce quarterly location reports

🔹 Impose a daily transaction limit of $1,000 per customer

South Hadley Moves to Ban the Machines
While the bill is still pending, Chief Gundersen has proposed a complete ban on crypto ATMs in South Hadley.

Under a plan modeled after ordinances in Waltham and Gloucester, store owners would have 30 days to remove their machines or face a $300 daily fine.
“Waltham saw the number of machines jump from four to fourteen within months,” Gundersen explained. “And in some cases, store owners helped elderly victims complete scam transactions because they were getting a cut of the money.”

Police Demand Stronger Oversight
Assistant District Attorney Nicholas Atallah said local departments now send him multiple crypto ATM scam cases every month.

“The scammers often pose as police officers or government officials, demanding that victims send money through these machines,” Atallah said. “Technically, it’s possible to trace these transactions — but in practice, it’s extremely difficult.”

Experts warn that only stronger regulation and public awareness can effectively curb the spread of crypto ATM scams, which remain one of the fastest-growing tools for money laundering and cyber fraud.


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