Massachusetts Considers Banning Crypto ATMs Over Widespread Scamming

Crypto ATMs have become a favorite tool of scammers in Massachusetts, with roughly 500 machines installed across the state since 2014. According to a recent investigation by The Boston Globe, these machines were used to scam Massachusetts residents out of around $7 million last year.

The scammers typically pose as bank representatives or law enforcement and call vulnerable people, often seniors, to tell them they need to deposit their money into the ATMs to satisfy an imaginary debt or protect their savings. The money then vanishes.

Massachusetts has no regulations on the machines, unlike 32 other states that have some kind of limits on how much money users can deposit per day. Four states have banned them completely.

The companies operating these ATMs argue they allow people without traditional bank accounts to store their money in digital wallets or participate in virtual currency trading, and that legitimate customers shouldn't be punished because scammers misuse the machines.