Massachusetts sees a surge in cryptocurrency ATM scams, leading to demands for a ban.

Rising Crypto ATM Scams in Massachusetts

Crypto ATM scams are significantly increasing in Massachusetts, causing substantial financial losses for businesses and individuals. Recent reports indicate scams have resulted in millions of dollars lost, prompting concerns and calls for increased regulation or outright bans. These incidents involve deceptive tactics where scammers impersonate authorities to solicit funds from unsuspecting victims.

Legislative Efforts and Regulatory Proposals

Massachusetts legislators are considering a bill (H 1247/S707) to establish consumer protection guidelines for crypto ATMs. The proposed legislation includes requirements for licensing operators as money transmitters, registration of kiosks, and quarterly reporting. A daily transaction limit of $1,000 per customer is also being considered to curb potential fraud.

Local Bans and Ongoing Challenges

South Hadley is exploring a local ordinance to ban crypto ATMs, mirroring successful bans implemented in Waltham and Gloucester. Law enforcement faces considerable difficulties in tracking and recovering funds lost to these scams, as transactions are often irreversible and untraceable. Local police departments are increasingly receiving requests to investigate scams involving crypto ATMs, demonstrating the scope of the problem.