AUSTRAC Cracks Down on Crypto ATM Scams, Protects Victims

In a significant operation to curb the misuse of cryptocurrency ATMs, Australian authorities have identified 90 individuals, many of whom were victims of scams or unwitting participants in money laundering schemes. This investigation, led by AUSTRAC’s cryptocurrency taskforce, involved collaboration with federal and state law enforcement agencies. The operation aimed to understand how crypto ATMs are being exploited to facilitate fraud and the laundering of illicit funds.

One of the most distressing cases involved a woman in her 70s who lost over $281,000 after falling victim to romance and investment scams. She was manipulated into repeatedly depositing cash into crypto ATMs under false promises. Another victim, also in her 70s, was conned out of more than $130,000 after engaging with what she believed was a legitimate investment platform. These cases highlight the vulnerability of elderly individuals to such scams.

AUSTRAC CEO Brendan Thomas expressed concern over the findings, stating that the extent of the harm caused by crypto ATMs was more alarming than expected. He emphasized that with a better understanding of the issues, AUSTRAC is now better positioned to take action, including working with the industry to implement stricter regulations.

In response to these findings, AUSTRAC has introduced minimum operational standards for crypto ATM providers. These standards include a $5,000 limit on cash transactions, mandatory scam alerts, and improved customer verification and transaction monitoring protocols. These regulatory changes are designed to tackle the exploitation of the machines by fraudsters and reduce opportunities for laundering proceeds from criminal activity.

The operation was coordinated by NSW Police and supported by the Australia-New Zealand Crypto Practitioners Working Group. Additionally, the Australian Federal Police’s cybercrime coordination unit is launching a national awareness campaign to educate the public about the risks of using crypto ATMs under coercion or misleading advice.

Crypto scams in Australia have been increasing at an alarming rate. Over $3 million was lost to cryptocurrency ATM scams between January 2024 and January 2025. Experts warn that the real figure could be far higher. A report indicates that 150 scam cases were reported, mostly involving investment fraud, extortion, and romance scams, with victims losing over $20,000 on average. Nearly half of those affected were aged over 51, underscoring the need for heightened vigilance and protection for vulnerable populations.