Massachusetts residents have faced significant financial losses due to Bitcoin scams, but there is encouraging news from Beverly, where authorities have managed to recover $21,000 for victims and aim to reclaim even more funds.
Beverly Police Chief John G. LeLacheur mentioned that this recovery may represent one of the first instances of money being returned to victims of such scams in Essex County.
The investigation launched late last year when three residents of Beverly, aged 80, 83, and 90, fell victim to a scheme involving deposits into Bitcoin ATMs, a fraudulent tactic that has become increasingly prevalent.
Fortunately, the victims reported the scam promptly, allowing police to secure warrants to confiscate the ATM machines. According to law enforcement, these machines are typically cleared out daily, making swift reporting crucial for effective intervention.
“Reporting these scams within 24 hours was absolutely essential to help the residents who were victimized,” LeLacheur stated. “Once the cash is withdrawn, it’s challenging for law enforcement or prosecutors to recover it.”
On January 21, the court directed that $21,020 be returned to the victims. Police confirmed that one victim has already received a check, while the others will be compensated shortly.
The police department has additionally seized $150,000, which they are working on recovering for potential victims.
According to police, Bitcoin scams have resulted in millions of dollars lost by state residents. In 2024, Americans reported losing $5.7 billion to investment scams, as reported by CNBC.
To help raise awareness, here are some warning signs to watch for, as outlined by the Federal Trade Commission:
- Scammers may impersonate a familiar organization or use the name of a legitimate business or charity.
- Fraudsters often fabricate problems or prizes, claiming that a family member is in urgent need of help or stating you’ve won money in a contest but must pay a fee to claim your winnings.
- Scammers typically urge victims to act swiftly and may issue threats for non-compliance.
- They may request payment in a specific form, such as through Bitcoin, via a money transfer, or with gift cards.
The FTC also cautions the public against unsolicited text messages or emails that appear to be from a familiar company. It’s best to avoid clicking on any links, and to reach out to the company directly using a trusted website or phone number.
If you suspect you may have been scammed, report it to your local police department immediately. You can also file a fraud report with the FTC online at reportfraud.ftc.gov.
