Essex DA Paul Tucker credited the "quick-thinking and diligent work" of local officers to help retrieve the funds that are typically lost in these types of scams. "Due to the decentralized nature of this technology and the rapid pace at which many companies collect cash, these outcomes are often, sadly, not possible," Tucker said.
Residents are advised to be wary of anyone who makes unsolicited requests for money via cryptocurrency or who makes demands that money "owed" be paid back with Bitcoin, gift cards and other forms of non-traditional payments. Tucker said that while that money is usually gone for good, his office was able to return about $20,000 to three North Shore residents on Friday.
In response to these scams, Danvers and Peabody are among the cities and towns on the North Shore to restrict or ban these ATMs. In one scam that the Essex DA's Office cited, a Middleton woman was convinced to send more than $11,000 using a Bitcoin Depot ATM located in the Country Farm convenience store on Maple Street in Danvers.
A fake customer service representative claiming to be with PayPal told her by phone that her account had been hacked and she would need to create a new one. The "rep" then convinced her that $19,000 had been fraudulently used from her account, and that if she sent in $10,000, they would "call it even." Middleton Police Det. Adam Maccini got involved quickly and, via a search warrant, was able to retrieve the funds from the scammer's digital crypto-wallet.
A man in his 70s from Salem received an email stating that he needed to pay $450 to get rid of a virus on his computer. When the victim attempted to send $200, he was told that he had accidentally withdrawn $20,000. The scammer, who had gained remote access to the victim's computer, showed the victim a fake digital bank statement that indicated that his account received the $20,000 deposit. The victim was convinced to deposit $4,400 into the crypto-ATM kiosk at the Pump 'n Pantry gas station in Lynnfield to help "repay" the money. Lynnfield Police Det. Jared Provost got a search warrant to claw back the money. An Andover man was also convinced to send a scammer $12,000 via a Bitcoin Depot ATM machine at a Cumberland Farms in New Hampshire. While logged in to his Facebook account, the man had received a message saying that his account had been "compromised," along with a phone number to call to fix the problem. Those who answered his call falsely identified themselves as federal agents and threatened him with criminal charges. They also instructed him not to tell his wife or anyone else.