Crypto ATM scams are surging across Massachusetts and nationwide, with victims losing tens of thousands of dollars and the FBI receiving over 11,000 complaints in 2024, totaling nearly a quarter-billion dollars in losses.

Law enforcement faces significant challenges investigating these scams due to the near-impossibility of tracing transactions and the fact that they are often irreversible, with scammers frequently impersonating authorities to deceive victims.

Legislative efforts are underway to regulate crypto ATM operations through licensing, registration, quarterly reporting, and a daily transaction cap of $1,000, aiming to enhance consumer protections.

In response to the rise in scams, towns like South Hadley are considering banning crypto ATMs entirely, proposing a 30-day removal period for existing machines and fines of $300 per day for non-compliance, similar to measures in Waltham and Gloucester.

Concerns have been raised that some store owners may have knowingly assisted scammers, especially targeting vulnerable populations like seniors, fueling debates over the proliferation of these machines.

Victims include business owners who have lost substantial sums, such as an $11,000 loss when an employee was scammed into depositing money into a crypto ATM, with recovery efforts proving futile.

Other victims in Massachusetts have lost large amounts, including $48,000 and $4,900, with the likelihood of recovering these funds remaining low.

South Hadley’s proposed ban aims to prevent further scams and curb the rapid increase of crypto ATMs, which authorities believe facilitate criminal activity.

Police Chief Jennifer Gundersen emphasized the difficulties law enforcement faces in investigating and recovering funds from these untraceable and irreversible crimes.