Beverly police to reimburse $21K lost in Bitcoin scams to victims

Bitcoin scams have become a rampant issue in Massachusetts, causing residents to lose significant sums of money. Despite this, there is a glimmer of hope in Beverly, where authorities have managed to retrieve $21,000 for victims and are working towards recovering even more funds.

Police Chief John G. LeLacheur of Beverly revealed that this case marks one of the few instances where money lost in a scam has been refunded to victims in Essex County. The ordeal began late last year when three elderly Beverly residents, aged 80, 83, and 90, fell prey to a fraudulent scheme involving Bitcoin ATMs.

Upon realizing they had been duped, the residents wasted no time reporting the scam. Subsequently, law enforcement secured warrants to confiscate the ATM machines, a crucial step since these devices are regularly emptied, making swift reporting critical in preventing further losses.

“It was absolutely critical that these scams were reported within 24 hours of the time residents were victimized,” emphasized LeLacheur. “Once that cash has been emptied out, there is little police or prosecutors can do to get the cash returned.”

On January 21, a court order mandated the restitution of $21,020 to the victims. Notably, one victim has already received their reimbursement, while the remaining two can expect their payouts shortly. Furthermore, authorities have also seized an additional $150,000 earmarked for return to victims.

Bitcoin scams have precipitated multimillion-dollar losses in Massachusetts. In 2024, reports revealed that Americans collectively lost $5.7 billion to various investment scams. To shield oneself from such fraudulent activities, the Federal Trade Commission advises the public to remain vigilant and look out for these warning signs:

– Scammers may pose as familiar entities or invent fictitious problems or rewards to extort money.
– Victims are coerced into swift action accompanied by threats to induce compliance.
– Scammers typically demand specific payment methods like Bitcoin, money transfers, or gift cards.

The FTC also cautions against responding to unsolicited emails or text messages, even if they appear to originate from reputable sources. Individuals are advised not to click on any links provided but instead to reach out directly to known organizations through verified contact information.

If you suspect you have fallen victim to a scam, waste no time in reporting it to your local police department or filing a report with the FTC at reportfraud.ftc.gov. Stay alert, stay informed, and remember, vigilance is key in safeguarding against deceptive practices in the digital age.