NEWBURYPORT — The Newburyport Police Department intervened just in time to prevent a woman from depositing $11,000 in cash into a Bitcoin ATM as part of an attempted scam.
The police action comes as the Newburyport City Council considers a proposed ban on all Bitcoin ATM machines within city limits.
On Tuesday, Oct. 20, at approximately 5:30 p.m., Patrolman Nathaniel Kelley was at a gas station on Storey Avenue when he was approached by a 75-year-old woman, who feared she may be getting scammed.
The woman reported that she was nervous because someone claiming to be a government agent had called her, knew personal information about her, and told her she had to deposit money into a Bitcoin ATM machine to avoid legal repercussions.
Based on his training, Patrolman Kelley was immediately suspicious and asked to speak to the individual on the phone with the 75-year-old, but that individual hung up as soon as a police officer joined the conversation.
Patrolman Kelley soon learned the 75-year-old had driven from Maine in search of a Bitcoin ATM machine, and that she had withdrawn $11,000 in cash because of the fears the phone call prompted in her.
Patrolman Kelley explained that the call was likely a scam, and encouraged the woman to keep an eye on her accounts in the immediate future and to report any suspicious activity.
The call was a common type of scam in which suspects pose as law enforcement or government officials and threaten would-be victims with legal consequences if they don’t provide money immediately. Other variations of the scam involve claims that a relative is in jail and needs immediate bail money.
Once cash is deposited into Bitcoin ATM machines, it is often irretrievable unless the entire Bitcoin ATM is seized with a search warrant. Few victims who actually send cash ever get their money back, and arrests are rare.
In a proactive step, Newburyport Police Inspector Dani Sinclair has been working on a proposed City bylaw that would ban Bitcoin ATMs from the city. The City Council is scheduled to take a final vote on the measure at their Monday meeting.
“Most people don’t even know what Bitcoin ATMs are for, and we mostly only hear about them when they are used to transmit funds to scammers,” said Marshal Matthew Simons. “These machines provide little service to residents, but represent a real threat to public safety by providing a quick and easy way for residents to be separated from their hard-earned money. I thank Inspector Sinclair and Patrolman Kelley for their work these matters.”
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