$1.6 Million Lost in Crypto Scams as ATM Usage Explodes
A recent investigation by Tasmania Police Cyber Investigations Unit has revealed that the top 15 users of cryptocurrency ATMs in the state were all victims of fraud, collectively losing 2.5 million Australian dollars (approx. $1.6 million USD). Of that, $592,000 was deposited directly into crypto ATMs, highlighting the role these machines are playing in facilitating scams.
The findings come amid a growing national crackdown in Australia on the illicit use of crypto ATMs, with AUSTRAC and the Australian Federal Police leading a broader initiative to curb financial crime across the sector.
Scammers Exploit ATMs After Banks Intervene
Detective Sergeant Paul Turner reported that in many cases, victims were coerced into using crypto ATMs after traditional banks flagged suspicious activity. When banks questioned or blocked the transactions, scammers redirected their victims to ATMs, which are harder to trace and regulate.
“Victims are being manipulated, intimidated, and pressured into investing in fake investment and romance scams,” Turner said.
He warned that many victims suffer severe long-term consequences, including forced asset sales, retirement delays, or dependence on public pensions.
Warning Signs and New Safeguards
Turner emphasized a red flag for the public:
“If you’re asked to deposit cash into a cryptocurrency ATM by someone you’ve never met or with a high-pressure deadline, it’s likely a scam.”
In response to rising fraud, AUSTRAC introduced new operational rules and transaction limits for crypto ATM operators starting June 3, as part of its 2025 anti-scam strategy.
Rapid Expansion of Crypto ATMs in Tasmania
Tasmania has seen explosive growth in crypto ATM deployment. In 2021, the state had only one crypto ATM. Today, Coin ATM Radar reports at least 24 units across the region. Nationally, Australia now ranks third globally, with over 1,890 active crypto ATMs, trailing only the U.S. and Canada.
Major operators include:
- Localcoin – 807 ATMs
- Coinflip – 691 ATMs
- Bitcoin Depot – 212 ATMs
Global Scrutiny Intensifies
Australia’s crackdown mirrors similar actions in New Zealand, which recently banned crypto ATMs and capped international cash transfers, and in Spokane, Washington (USA), where the City Council ordered a full removal of crypto kiosks to combat fraud.
As crypto access expands, authorities are urging stronger public awareness and tighter oversight to protect users from increasingly sophisticated scam operations.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.