Scammers don’t ask you to mail a check anymore. They direct you to a convenience store. There, beside the chips and sodas, sits a kiosk that looks like an ATM but exists, in practice, to separate vulnerable people from their money.
The targets are most often seniors — people the FTC says are more than three times as likely as younger adults to fall victim to these scams.
Last year in Waltham alone, more than 20 residents reported $75,000 in losses to cryptocurrency scams — and because victims often feel too ashamed to come forward, police say the real number is likely much higher.
When AARP Massachusetts first started tracking crypto ATMs in 2023, there were about 300 machines in the state. That number has more than doubled in roughly two years.
Essex County District Attorney Paul Tucker told the state legislature that Massachusetts has between 650 and 800 of these kiosks, most of them in gas stations and corner stores. He called them “a payment portal for scammers.”
Nationally, the FBI received more than 12,000 complaints involving crypto ATM fraud in 2025, with losses topping 33 million.
This is not a distant problem. Marblehead Detective Theresa Gay told the Marblehead Current last October that the department receives five to 10 reports of crypto scam calls every single month — and the machines don’t even need to be in town to cause harm. Scammers simply direct victims to kiosks in neighboring communities.
In February, Attorney General Andrea Joy Campbell filed suit against Bitcoin Depot, one of the largest crypto ATM operators in the country, alleging that over half the money flowing through their Massachusetts kiosks was connected to scams. These machines aren’t financial tools — they are weapons of scam artists.
The victims are not careless or naive. According to the Federal Trade Commission, people over 60 are more than three times as likely as younger adults to report losing money through these machines. Marblehead has a significant senior population. They deserve better than a piece of hardware sitting in a local store waiting to drain their savings in seconds.
Some argue we should regulate, not ban. Massachusetts already tried that. The state put protections in place — daily transaction limits, mandatory fraud warnings, a refund window for scam victims. Regulators concluded they weren’t enough. When the state’s attorney general is suing the industry for facilitating fraud, it’s hard to argue those protections haven’t already failed.
The proliferation problem is just as urgent. Before Waltham’s ban, the city had four crypto ATMs. Within months, that number had grown to 14. These machines spread quickly, and they spread into the places where vulnerable people already are.
Article 33 on the Town Meeting warrant gives Marblehead the chance to get ahead of that rather than scramble to catch up.
The second objection is about financial inclusion. Crypto ATMs serve the unbanked, giving people without traditional bank accounts access to digital finance, the theory goes. But that argument doesn’t hold up, either.
These machines charge fees of 10% to 20% per transaction. They require users to already have a digital cryptocurrency wallet and the technical knowledge to use it.
Marc Grens co-founded one of the largest crypto ATM networks in the country and ran it for nearly a decade before shutting it down. His conclusion: “To do the right thing is not profitable in this industry.”
More bluntly, he added, “Without these scam victims, these victimizations, these companies wouldn’t survive. These Bitcoin ATMs wouldn’t exist.”
Anyone who legitimately wants to purchase cryptocurrency can do so online at a fraction of the cost, with real consumer protections in place.
What crypto ATMs actually provide, in practice, is a fast, anonymous, irreversible cash-to-crypto pipeline — which is exactly why scammers love them. Unlike a wire transfer, which a bank may flag or delay, a crypto ATM transaction vanishes into the blockchain the moment it clears. Waltham Police Detective Michael Maher testified before the state legislature that out of roughly 60 crypto ATM fraud cases he has worked, he recovered funds in maybe four. Four.
Gloucester, Waltham and Ipswich have already acted, and at least two other Massachusetts communities are considering similar measures. Marblehead should join them. We encourage all Town Meeting members to vote yes on Article 33.
If you think you or someone you know has been targeted by a crypto ATM scam:
- Marblehead Police Department — File a report with local police. Non-emergency line: 781-631-1212.
- Massachusetts Attorney General’s Office — File a consumer complaint at mass.gov/ago.
- FBI Internet Crime Complaint Center — Report online at ic3.gov.
- AARP Fraud Watch Network Helpline — Free support for victims and families: 877-908-3360, weekdays, 8 a.m.–8 p.m.
Remember: No government agency, bank, or legitimate business will ever ask you to send money through a cryptocurrency ATM.
