Australian Federal Police Crackdown on Crypto ATM Scams Reveals 433,000 Australian Dollar Loss

Australian federal police have intensified their efforts to combat the criminal use of crypto ATMs, reaching out to over 90 individuals as part of a broader crackdown. This initiative has uncovered several victims of scams, including a 77-year-old widow who lost a significant amount of her savings. The widow, who had been in an online relationship with a man she believed to be from Belgium for two years, was unaware of the deception until police intervened.

The scammer, posing as her romantic interest, convinced her to invest in Bitcoin by presenting fake documents that claimed he had made substantial profits. The widow, following his instructions, withdrew money from regular ATMs and fed it into Bitcoin ATMs, ultimately losing 433,000 Australian dollars ($281,947) over 18 months. She described the process as labor-intensive, often involving large sums of cash and taking half a day to complete each transaction.

During the crackdown, police identified another victim in her 70s who was duped by an advertisement for a trading firm, resulting in a loss of over $200,000. The task force targeted high-risk users of crypto ATMs, contacting 21 individuals suspected of being either victims of scams or involved in illicit activities. One person was charged with property laundering offenses, while four others received formal cautions for suspected drug purchases or acting as money mules.

The investigation revealed that a significant portion of crypto ATM transactions involved victims rather than criminals. Some individuals, unaware they were being scammed, assisted criminals or knowingly transferred funds to recover their stolen money. The Australian Federal Police (AFP) emphasized the importance of recognizing the signs of a scam, such as guaranteed quick profits, high-pressure deadlines, and the absence of personal meetings.

Australia has the third-largest number of crypto ATMs globally, with 1,871 machines in operation. The recent crackdown follows the implementation of new operating rules and transaction limits for crypto ATM operators by AUSTRAC in June. The agency has also identified crypto as a priority area for 2025, aiming to combat the rising number of scams involving these machines.

The AFP's Commander Graeme Marshall warned the public about the dangers of being manipulated into feeding thousands of dollars into crypto ATMs through false promises of love, employment, investment, or quick profits. He urged individuals to cease contact immediately and report any suspicious activity if they encounter such situations.

This crackdown highlights the growing concern over the misuse of crypto ATMs for illicit activities and the need for increased vigilance among the public. The AFP's efforts to educate and protect individuals from falling victim to these scams are crucial in mitigating the financial and emotional impact on those affected.