Australian Police Crackdown on Crypto ATM Scams Reveals 3.1 Million Australian Dollars in Losses

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 had convinced the widow to invest in Bitcoin, presenting her with fake documents that claimed he had made substantial profits within a short period. The victim, following the scammer's instructions, withdrew money from regular ATMs and transferred it through Bitcoin ATMs. Over 18 months, she sent her entire life savings, totaling 433,000 Australian dollars ($281,947), through these transactions. The widow described the process as labor-intensive, often involving large sums of cash and taking half a day to complete each transfer.

During the crackdown, police identified another woman in her 70s who was also a victim of a crypto ATM scam. She lost over 200,000 Australian dollars after being lured by what she thought was a legitimate advertisement for a trading firm. The task force targeted the top users of crypto ATMs, who were at high risk of being involved in illicit activities or scam victimization.

Police contacted 21 individuals suspected of being victims or involved in illicit activities related to crypto ATMs. One person was charged with property laundering offenses, while four others received formal cautions for suspected drug purchases or acting as money mules. Some of these individuals were actually scam victims who had unwittingly assisted criminals or knowingly transferred funds to recover their stolen money.

Australia has the third-largest number of crypto ATMs globally, with 1,871 machines currently in operation. The latest crackdown follows the implementation of new operating rules and transaction limits for crypto ATM operators by AUSTRAC in June. The agency had previously flagged crypto as a priority for 2025.

Scam victims are often manipulated through fake promises of love, employment, investment, or quick profits. Police advise that if someone guarantees quick profits, creates a sense of urgency, or if you have never met the person before, it is crucial to cease contact immediately and report them. The AFP also warns against sending money if requested to pay using cryptocurrency by any individual, business, or government agency.

Australia's online cybercrime reporting system, ReportCyber, received 150 unique reports of scams involving crypto ATMs between January 2024 and January 2025, with losses exceeding 3.1 million Australian dollars ($2 million). The crackdown highlights the growing concern over the misuse of crypto ATMs and the need for increased vigilance and regulation to protect potential victims.