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Police are cracking down on the use of cryptocurrency ATMs amid a surge in scams targeting older Australians. Learn how these machines are being used to launder money and how to stay safe.
Crypto ATMs: A New Tool for Scammers in Australia
Cryptocurrency ATMs have rapidly spread across Australia, but not all users are legitimate. A recent national crackdown involving multiple police forces revealed that these machines are increasingly used to facilitate scams—particularly romance and investment scams targeting older Australians.
Olivia’s Story: A Costly Online Romance
Olivia, a 77-year-old widow from Sydney, lost her entire life savings—$433,000—over two years to a scammer she met on a dating app. Posing as a Belgian man working overseas, the scammer convinced her to invest in bitcoin, walking her through transactions at crypto ATMs.
“The worst part was having to tell my daughter I’d given away my life savings,” Olivia said. Her scammer directed her to use crypto ATMs where she would feed in thousands of dollars in cash, converting it into digital currency that quickly vanished overseas.
The Scale of the Scam
The operation led by NSW Police and AUSTRAC, with support from the AFP and other state forces, tracked Australia’s most prolific crypto ATM users. Out of 90 people identified, 21 were involved in romance or investment scams—either as victims or perpetrators.
In just a few years, the number of crypto ATMs in Australia has skyrocketed from 23 in 2019 to over 1,800 in 2024. These machines allow users to convert cash into digital currency with ease, making them attractive to scammers and criminals alike.
Why Crypto ATMs Appeal to Scammers
Dan Halpin, CEO of Cybertrace, explained that older Australians are particularly vulnerable. “Crypto ATMs are easier to use than online exchanges. Scammers find it simpler to walk a victim through an in-person transaction at a physical machine.”
The $275 million moved through crypto ATMs annually often ends up with international crime syndicates, including groups based in China and Israel.
Common Crypto ATM Scams in Australia
According to the Australian Cyber Security Centre, Australians lost $3 million through crypto ATM-related scams in just 12 months. The breakdown of these scams includes:
- Investment scams: Fake crypto investment opportunities.
- Romance scams: Fake relationships where scammers gain trust to request money.
- Extortion emails: Threats demanding crypto payments.
Most victims are women aged over 51.
Police Response and Prevention Measures
- Educational Signage: Warning signs placed at ATMs.
- $5,000 Cash Limit: AUSTRAC-imposed limits on deposits and withdrawals.
- Surveillance: Authorities monitoring high-usage accounts and transactions.
NSW Police cybercrime commander Matthew Craft urges: “If someone you’ve only met online asks you to use a crypto ATM, you are almost certainly being scammed.”
How to Stay Safe
- Don’t send money to online acquaintances: Especially if you’ve never met in person.
- Be wary of investment ‘opportunities’: Especially those that involve crypto.
- Never carry large sums of cash: And avoid converting cash into crypto without thorough verification.
- Report suspicious activity: Contact Scamwatch or the Australian Cyber Security Centre.
Crypto ATMs may offer convenience, but without caution, they can become a direct pipeline to international crime syndicates. Stay informed, stay alert, and never act on financial advice from someone you don’t know personally and trust completely.
Comments from our readers
Keen to educate
It's alarming how easily these scams target vulnerable individuals. More public awareness and education about the risks associated with crypto ATMs should be prioritised to prevent further financial loss in our community.
Stay Safe Out There
What a heartbreaking story! It’s so important for all of us to be aware of these scams, especially for our older loved ones. Kudos to the police for cracking down on this and providing support. Let’s spread the word and help each other stay safe in the evolving world of cryptocurrency!
Disgraceful exploit
It's disgusting how scammers can take advantage of vulnerable people through these crypto ATMs. The authorities need to do much more to prevent this exploitation and protect our elderly citizens from losing their life savings!
Great idea, really
Ah, yes! Converting cash to crypto with strangers sounds like a fantastic retirement plan!
Crypto ATMs Dilemma
This article underscores the risks associated with crypto ATMs, especially for vulnerable populations. Enhanced regulatory measures and public education are essential to mitigate scam prevalence, as the convenience of these machines is being exploited by criminal enterprises.
Thank you, from a reader
I appreciate this vital information on crypto ATM scams. It's so alarming to hear about vulnerable individuals like Olivia falling victim. Thank you for raising awareness, and I hope more people read this to protect themselves and their families from these deceitful tactics.