Tasmanian Police Uncover $2.5 Million Crypto ATM Scam Targeting Elderly

Tasmanian police have uncovered a significant scam operation involving cryptocurrency ATMs, revealing that the top 15 users of these machines in the state were all victims of fraudulent activities. The investigation, conducted by the Tasmanian Police Cyber Investigations Unit, found that these individuals had suffered combined losses amounting to $2.5 million. Of this total, approximately $900,000 was deposited directly into cryptocurrency ATMs, highlighting the extent to which these machines have been exploited by scammers.

The victims, predominantly aged around 65, were targeted through various scams, including romance scams and fake investment schemes. These scams often promised high returns of 30-40% or the prospect of a romantic relationship, luring victims into depositing large sums of money into cryptocurrency ATMs. The number of these ATMs, known as CATMs, has surged from just one in 2021 to over 20 in 2023, providing scammers with an additional avenue to defraud unsuspecting individuals.

Detective Sergeant Paul Turner from the Cyber Investigations Unit emphasized the manipulative tactics used by scammers, who often contact victims through phone calls, emails, or social media before moving conversations to encrypted messaging apps to avoid detection. Victims were frequently threatened, intimidated, and manipulated into depositing money into these ATMs. Once the funds were deposited, retrieving them became nearly impossible without knowing the destination of the transaction.

The impact on the victims has been severe, with many suffering lifelong financial and mental consequences. Some were forced to delay retirement, sell off assets, or rely on social services to make ends meet. The emotional toll has been equally devastating, with victims experiencing significant stress and anxiety.

In response to this growing threat, police are urging families to be vigilant and look out for red flags, such as relatives frequently visiting the same crypto ATM, withdrawing large sums of cash, or struggling to pay for essentials. The federal government is also taking steps to implement new compliance measures, including limiting deposits to crypto ATMs to $5,000 at a time, in an effort to curb scam activity.

Detective Sergeant Turner advised anyone who is contacted by unknown individuals and asked to send money via crypto ATMs to be cautious, as it is almost certainly a scam. He emphasized the importance of reporting suspected scams to the police immediately. "If you’re asked to deposit into a crypto ATM, it’s likely a scam," Turner said. "If the offer or the request is made with some level of urgency or intimidation or threats or if you’re simply promised higher returns for your money, it’s likely a scam."

The investigation underscores the need for increased awareness and vigilance regarding the use of cryptocurrency ATMs. As these machines become more prevalent, so too does the risk of falling victim to scams. By educating the public and implementing stricter regulations, authorities hope to mitigate the impact of these fraudulent activities and protect potential victims from financial ruin.