Massachusetts AG Urges Vigilance Against Surging Cryptocurrency Scams Targeting Residents

By Staff Reporter | April 18, 2026

Boston, MA – As cryptocurrency scams proliferate across the Commonwealth, Massachusetts Attorney General Andrea Joy Campbell is sounding the alarm on how residents can protect themselves in the volatile world of digital assets. With fraudsters exploiting everything from romance schemes to fake government threats, the AG’s office is ramping up efforts to educate the public and pursue justice for victims.

Red Flags and Common Tactics

The Massachusetts Attorney General’s Office (AGO) has identified cryptocurrency ATMs, or kiosks, as a primary tool for scammers. These machines, often found in convenience stores, gas stations, and banks, allow criminals to quickly convert victims’ cash into untraceable cryptocurrency. Scammers typically initiate contact via phone, text, or email, impersonating authority figures, tech support, or even romantic interests to coerce payments.

“Don’t engage. Unless you contact your bank or credit card company directly, never provide any payment or personal information over phone, text, or email,” advises the AGO in its Data Privacy Week guidance. Victims are often pressured into rushed transactions, appearing panicked or scripted when interacting with bank tellers.[1]

Key red flags include promises of “low-risk, high reward” investments – a rarity in the unstable crypto market – or demands for immediate action without time for research. The AGO emphasizes verifying claims by calling organizations directly using public numbers and searching company names with terms like “scam” or “fake.”[1]

Lawsuits and Enforcement Actions

AG Campbell’s office has taken decisive action. In a high-profile lawsuit against Bitcoin Depot, the largest crypto kiosk operator in Massachusetts, the AGO alleged that over 80% of customers depositing $10,000 or more between August 2023 and January 2025 were involved in scam-related activity. Nearly 60% of the company’s Massachusetts revenue during that period stemmed from these transactions, despite internal warnings from employees.[4]

The AG expressed hope in recovering funds for victims, leveraging advanced blockchain intelligence tools like those from TRM Labs. This technology helped trace stolen assets in cases involving four Massachusetts residents, prioritizing restitution amid a surge in complaints.[2][6]

Calls for a Ban on Crypto Kiosks

AARP Massachusetts, alongside figures like Middlesex Sheriff Peter J. Koutoujian, is advocating for a complete ban on these kiosks. “Day after day, residents across the Commonwealth are losing money in scams involving unregulated cryptocurrency kiosks,” said Sheriff Koutoujian. “Placed in easily accessible spots like gas stations and convenience stores, these kiosks are a virtual wild west.”[4]

Jen Benson, state director of AARP Massachusetts, echoed the sentiment: “A ban on crypto ATMs is now the most effective way to stop the ongoing damage.” Previous legislative pushes for warnings, transaction limits, and operator accountability have fallen short as losses mount.[4]

Specific Scam Types to Avoid

• Romance Scams: Online dates pushing crypto investments are invariably fraudulent. “Do Not Mix Romance and Investment Advice.”[3]
• Fake Government Agents: No agency demands crypto payments or threatens over the phone.[3]
• Tech Support and Emergency Frauds: Ignore claims of computer issues or family emergencies; verify independently.[3]
• Pig Butchering Schemes: Scammers build trust, show fake profits, then hit victims with fees to withdraw.[3]

The AGO’s Crypto Awareness Brochure details how fraudsters guide victims step-by-step to kiosks, making recovery nearly impossible once funds are sent.[3]

Investment Cautions from State Securities

The Massachusetts Securities Division warns about even legitimate crypto products like spot bitcoin exchange-traded products (ETPs), approved by the SEC in January 2024. These are highly volatile; investors should only risk what they can afford to lose and verify sellers’ credentials. Fees vary, and broker-dealers must adhere to fiduciary standards.[5]

“Cryptocurrency is unstable and more likely to be high-risk and low reward,” notes the AGO. Always demand license numbers from financial advisors and take time to research.[1]

What to Do If Victimized

If scammed, act fast: Contact local police, file with the FBI’s Internet Crime Complaint Center, and report to the AGO at 1-888-830-6277 or One Ashburton Place, 18th Floor, Boston. Resources are available in English, Spanish, and ASL.[1][3]

While funds sent to scammers are rarely recoverable, the AG’s use of blockchain forensics offers hope in select cases. The office maintains a list of reported scam websites and urges vigilance: “If it’s too good to be true, it probably is.”[1]

Broader Implications

Massachusetts’ crackdown reflects a national trend, with crypto scams costing Americans billions annually. The AGO’s commitment to combating fraud, bolstered by tech partnerships, positions the state as a leader. Residents are encouraged to stay educated through official guides and report suspicious activity at banks or kiosks.[2]

As crypto evolves, so do the risks. AG Campbell’s message is clear: Verify, research, and never rush. By heeding these warnings, Massachusetts families can safeguard their savings in an increasingly digital financial landscape.