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

The investigation started late last year when three Beverly residents, ages 80, 83 and 90, were tricked into depositing cash into Bitcoin ATMs, an increasingly common fraud scheme

By Thea DiGiammerino •
Published 20 mins ago •
Updated 2 mins ago

Bitcoin scams have cost Massachusetts residents millions of dollars, according to police, but there’s some good news out of Beverly, where investigators have recovered $21,000 for victims and hope to return even more.

Beverly Police Chief John G. LeLacheur said it’s believed to be one of the first times money was recovered in such a scam and returned to victims in Essex County.

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The investigation started late last year when three Beverly residents, ages 80, 83 and 90, were tricked into depositing cash into Bitcoin ATMs, an increasingly common fraud scheme.

The residents quickly reported the scam, and police were able to obtain warrants to seize the ATM machines. These machines are often emptied daily, according to police, so quick reporting of a potential crime is important.

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

On Jan. 21 the court ordered $21,020 returned to the victims. One victim has already received a check, according to police, and the other two will be presented soon.

The police department has also seized another $150,000 that they are working to have returned.

Bitcoin scams have cost state residents millions of dollars in cash, according to police. In 2024, Americans reported losing $5.7 billion to investment scams, according to CNBC.

Here are some red flags to look out for, according to the Federal Trade Commission:

Scammers may pretend to be from an organization you know or use the name of a real organization, business or charity.
Scammers often make up a problem or prize, such as claiming a family member is having an emergency or claiming you’ve won money in a sweepstakes but must pay a fee to claim it.
Scammers will pressure victims to act quickly and may make threats if you do not act immediately
Scammers will ask for a specific form of payment, such as sending money through Bitcoin, a money transfer or a gift card.

The FTC also warns the public to be suspicious of unsolicited text messages or emails, even if they appear to be from a company you do business with. It’s safest not to click on any links and to contact the company directly using a website or phone number you know is legitimate.

If you believe you have been the victim of a scam, report it immediately to your local police department. You can also report fraud to the FTC online at reportfraud.ftc.gov.