HOLYOKE, MA — A Holyoke police detective prevented a resident from losing thousands of dollars in a bitcoin scam after the victim realized mid-transaction they were being defrauded.
The victim received a phone call from someone claiming the person had an active arrest warrant for missing jury duty and owed $6,000 or risked arrest, according to Police Chief Brian Keenan.
The caller instructed the victim to withdraw money from a bank and deposit it at a local bitcoin kiosk.
After depositing some money, the victim realized it was a scam and called police.
Detective James Parnell acted quickly and canceled the transaction before it closed out, and the victim is expected to receive a refund from the kiosk operator.
In most cases involving these transactions, money cannot be recovered once the transaction processes, which can occur within minutes.
These bitcoin scams have defrauded western Massachusetts residents of more than $2 million in the past two to three years, Keenan said.
The scam varies but usually involves a victim receiving a phone call from someone stating they owe money and asking them to deposit cash into a bitcoin kiosk.
Keenan urged residents who receive such calls to hang up.
