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New cryptocurrency alert on the North Shore: Essex County DA
District Attorney Paul Tucker said about $10 million in financial fraud was reported in Essex County last year.
June 12, 2024 11:51am EDT
SALEM, MA — Escalating fraud schemes involving Bitcoin and other forms of cryptocurrency sold through ATMs have prompted a widespread warning to residents from Essex County District Attorney Paul Tucker.
Tucker’s office said that about $10 million in fraud schemes have been reported in Essex County over the past year, and that a common scheme involves citizens being contacted for payment and asked to make it via cryptocurrency through these ATMs or cryptographic kiosks. These machines allow people to acquire cryptocurrencies using cash, debit cards, credit cards, or bank transfers, often with high transaction fees.
“In many of these scams, users are directed to send cryptocurrency to the scammer’s digital wallet, and because these transactions are instant, there is no recovery period and the perpetrators can transfer the funds immediately,” Tucker said in the warning issued Tuesday morning. “The nature of these scams varies, from romance-based schemes and lottery-themed schemes to impersonation schemes.”
He said red flags include directions to make transactions while on the phone with the person requesting it, suggestions that the transaction should be kept secret from bank tellers and family members, and an example that cryptocurrency is best o single form of payment.
“Legitimate entities are not going to say cryptocurrency like Bitcoin is the only payment option,” Tucker said.
Tucker said the total amount of money lost in Essex County is likely much more than $10 million because many victims don’t report it.
Tucker encouraged citizens to be aware of the warning signs and urged victims of scams to immediately contact their local police department to report the crime.
(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. Twitter: @Scott_Souza.)