The Burlington Police Department is taking steps to combat a growing wave of scams involving cryptocurrency ATMs following a spike in cases that have cost residents, particularly seniors, tens of thousands of dollars.
Police Chief Thomas Browne and Lieutenant Detective Matthew Leary were before the Select Board with a proposed Town Meeting article to amend the town’s general bylaw that would prohibit cryptocurrency ATMs in Burlington. The goal is to protect residents from increasingly sophisticated fraud schemes that rely on these largely unregulated machines.
Under the proposed bylaw, businesses with cryptocurrency ATMs would have 60 days to remove the machines. After that, noncompliant businesses would face a fine of $300 per day. While store owners are not involved in the scams themselves, they often receive passive income of $200 to $300 per month from hosting the devices, an amount the fines are structured to counterbalance. Leary noted that enforcement would require routine checks similar to alcohol compliance monitoring.
The Select Board agreed that removing these machines is a proactive measure to help reduce victimization and voted to support the article at January Town Meeting.
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