Law enforcement in western Massachusetts say they’re seeing a rise in crypto-related scams – with one in particular costing victims thousands of dollars.
If you’ve been in a convenience or grocery store as of late, chances are you’ve encountered a crypto-centric ATM.
Most deal with the cryptocurrency Bitcoin and are meant to take your real-world dollars and convert them into the crypto asset, all while depositing it in a special digital “wallet.”
The machines are legitimate, but according to Springfield Police Superintendent Larry Akers, they are also at the center of scams costing locals serious dollars.
“Since the beginning of 2024, here in the city alone, there’s probably been approximately $624,000 lost due to the scam, mainly involving the cryptocurrency … Bitcoin,” he said. “These scams continue to grow in frequency and sophistication and, in total, with other scams here in the city, victims have lost over a million dollars, and that doesn’t even include the people that maybe, out of embarrassment, don’t even report that they’ve been scammed.”
At a press conference Monday, Akers, as well as the Hampden County Sheriff’s Department, say at least 29 victims have come forward after being lured into depositing cash at the machines.
In many cases, it starts with a phone call and the victim being convinced they need to pay off a fine or risk serious penalties.
“They typically impersonate law enforcement, and lately … the sheriff’s department, where they convince victims that they owe monies, whether it be through warrants or fines or some other fabricated reason,” Akers said. “The victims are instructed to go to a Bitcoin ATM, which are usually located in convenience stores, and deposit cash for the payment so they don’t get ‘arrested.’”
According to Springfield police and the sheriff’s office, victims from as far as Connecticut and upstate New York have traveled to the Springfield area – with scammers willing to stay on the phone for as long as two-and-a-half hours to talk them through it.
The money lost can range from a few thousand dollars to tens of thousands, Akers says.
The victims have largely been the elderly, but overall, ages have ranged from people in their 20s to their 90s.
Akers and Springfield Police Sgt. Denny Denault say once the money is deposited, it’s often transferred “to an untraceable person in another country.”
Denault says the companies behind the ATMs are receptive and respond to police inquiries, but more often than not, the money’s gone soon after it’s transferred.
“It’s a very easy fix: hang up the phone or, if you want to, call us,” he said. “We just thwarted one Sunday night – someone called in said [a call they received] doesn’t sound right and we said, ‘No, it’s not [us]’ and probably saved her about $15,000.”
“If anybody has any questions, they can call us up at the detective bureau,” he continued. “I would urge them to call the police department, call the sheriff’s department. But, it’s a crime that’s easy for the criminals, however very challenging for us.”
According to Chief Frank Ott of the Hampden County Sheriff’s Department, some of the calls involve scammers impersonating personnel, often claiming a Bitcoin deposit is needed to get the victim out of a warrant or some other situation – something Ott emphasized his office would never call for.
“The victims are getting a call by a deputy: Deputy Ross, Deputy Rose – which are real deputies at our department . They’re being told that there’s an outstanding warrant … and to clear up the warrant, they would need to immediately deposit money in these Bitcoin accounts,” Ott said. “We’re urging people not to do this at all… it’s a scam. The sheriff’s department would never call and request money from anybody.”
At least one case involved a Wilbraham woman getting a call from a fake “deputy,” the sheriff’s office says. The suspect claimed because the woman supposedly missed jury duty, she would be arrested unless she deposited $6,000 across multiple crypto ATMs in Springfield.
That was on May 29. A day later, a woman from Springfield lost $10,000 to practically the same scam, the sheriff’s office reported in a Facebook post. It was the victim’s entire savings account.
She then reportedly suffered a break down and tried to “turn herself in” when scammers allegedly tried to demand more funds.