Cryptocurrency scams are increasing, growing more sophisticated and leaving residents $624,000 in losses
SPRINGFIELD – People have lost more than $624,000 in cryptocurrency scams over the past 18 months in the Springfield area. The crimes, involving 29 victims, have been increasing in numbers and sophistication, with four people cheated out of $60,000 in the last week alone.
On Monday, Springfield Police and the Hampden Sheriff’s Department joined to warn people that many of those crimes are being tied to their departments, since scammers frequently pretend to be law enforcement officials who promise to erase a warrant or let them bail out a loved one, if the victim deposits money into bitcoin ATMs.
“The scams continue to grow in frequency and sophistication,” Police Superintendent Lawrence Akers said. “(Detectives) have been working tirelessly on the situation that we have been having quite often for the last year, year and a half, but it is really hitting its stride.”
The victims are from Western Massachusetts, New York and Connecticut. The bitcoin deposits all took place in Springfield, except for one in West Springfield.
Akers, Springfield Det. Sgt. Donald Denault and Frank Ott, chief of the law enforcement division of the Hampden Sheriff’s Department, said no sheriff’s deputy, police officer or any other legitimate agency will ever call looking for money, especially through bitcoin, gift cards or other means.
A total of $1.5 million has been lost due to all types of scams since January 2024, Akers said.
“These scammers are targeting our neighbors with fear and intimidation, stealing thousands of dollars from honest people. Let me be clear: No deputy will ever call you asking for money. If you get a call like this, hang up and report it immediately,” Hampden Sheriff Nick Cocchi said in writing.
Types of scams
There are many versions of the scam, but in the latest one, a caller will impersonate a current law enforcement officer – most recently from the Sheriff’s Department – and claim to have an arrest warrant for something like failure to attend jury duty.
In one case, a local business was scammed out of $5,000 when a caller pretended to be a fire marshal demanding the cash to prepare for an inspection or for a permit, officials said.
“It is an easy crime to commit. The caller just has to stay on the phone,” Denault said.
But it is also an easy crime to thwart, he said, urging people to hang up the phone and call police, either 911, dispatch or the detective bureau at 787-6355, and ask an officer about the issue, he said.
Recently, one resident did just that because he felt there was something off with the call. That move saved that person the $15,000 the scammers were demanding, Denault said.
Police also want to hear from people who may have been scammed in the past. He said some do not report it because they are embarrassed to have been taken in.
“Once you deposit your money into one of these bitcoins it is instantly transferred to an untraceable person in another country and it makes it very difficult for us to investigate,” Akers said. “We attempted to seize some money and get it back but it is very difficult and our courts, at this time, have not allowed us to seize these monies.”
One of the problems is the scams are relatively new, so courts and law enforcement have to work together more to try to find solutions, he said.
Generally, the machine operator receives about 10% of the cash deposited, which is their cut. That is usually the only amount police can get back and even that is difficult to claim, he said.
The crimes are centering around Springfield because there are several bitcoin ATMs designed to be used for investors in convenience stores and gas stations throughout the city. People have been directed to deposit money in the machines, including one on Allen Street, one of Belmont Avenue and one in West Springfield, Akers said.
Victims have been directed to machines as far away as upstate New York and Connecticut, as well as surrounding towns in Western Massachusetts. They are all races and have ranged in age from their 20s to their 90s. Akers said elderly people are often victims and urged residents make sure their older relatives know about the hoaxes.
“We are urging our community to help us get the word out about these scams. There is no lawful reason that anyone would ask you to deposit your money into Bitcoin machines,” Akers said. “If you receive these calls, please just hang up. We don’t want anyone to lose their life savings to a scam.”