Crypto ATM Scams Cost Tasmanian Victims A$2.5 Million

Tasmania’s top 15 users of cryptocurrency ATMs have lost a combined total of A$2.5 million (around $1.6 million) to scams, according to a July 11 report from Tasmania Police. Of that amount, more than a third (approximately A$592,000) was funneled directly through crypto ATMs.

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Scam Victims Lured to Crypto ATMs Through Fake Investments & Romance

According to the Tasmania Police Cyber Investigation report, crypto scams are becoming increasingly sophisticated and personal. Rather than targeting random individuals, scammers are now taking time to build emotional connections or financial trust before initiating the fraud.

Victims are often drawn into supposed romantic relationships or investment opportunities. Once trust is established, they are convinced to send funds. If banks raise concerns, scammers instruct them to withdraw cash and deposit it via a cryptocurrency ATM.

Detective Sergeant Paul Turner said many victims are pressured using fear, affection, or threats. Scammers create urgency and often impersonate trusted entities, including the government or technical support.

In several cases, people were tricked into believing they owed payments for utilities or taxes. Others thought they were being offered job opportunities.

The emotional manipulation is particularly effective with older users, who may not be as familiar with cryptocurrency systems. By the time many victims realize they’ve been scammed, their money has already been converted and is untraceable.

ATM Growth in Tasmania Creates New Avenues for Abuse

Tasmania had only one cryptocurrency ATM in 2021. Today, that number has risen to 24, as shown on Coin ATM Radar’s geo-distribution chart. While this reflects growing adoption, police warn that the machines are now a tool for scammers to bypass traditional financial scrutiny. The state’s most frequent ATM users were all victims, with an average individual loss of A$165,000.

Australia has become the third-largest country for crypto ATMs globally, behind the United States and Canada, now hosting over 1,890 machines. This surge has prompted increased attention from financial regulators.

On June 26, Australia’s financial intelligence agency AUSTRAC launched a nationwide sting operation to disrupt criminal networks using crypto ATMs.

One of the cases that prompted action involved a 77-year-old widow who, over 18 months, lost her entire life savings of A$433,000 to a romance scam. She was guided step-by-step by the scammer, from withdrawing funds at a traditional bank to feeding cash into a crypto ATM.

In response, AUSTRAC introduced new regulations, including a A$5,000 cap on individual crypto ATM deposits. The rules require improved ID verification, real-time monitoring for suspicious activity, and on-screen scam warnings at machines.

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Investigations show that about 72% of high-value crypto ATM users are over the age of 50, with many victims between 60 and 70 years old. The unfamiliarity with crypto systems and the personal nature of these scams make older Australians particularly vulnerable.

Tasmania Police advise residents to be cautious if asked to deposit cash into a crypto ATM, especially under pressure or by someone they haven’t met in person.

Australia isn’t alone in facing this challenge. In the United States, Arizona passed a law in May 2024 to restrict crypto ATM withdrawals. New users can only withdraw $2,000 daily, while returning users are capped at $10,500.

As the number of machines continues to rise, so does the risk. Authorities warn that awareness and skepticism are key in preventing further losses.