Crypto ATM Scams Cost Tasmanian Victims 2.5 Million Australian Dollars

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 Australian dollars, with approximately 592,000 Australian dollars deposited directly into cryptocurrency ATMs. This highlights 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 or the prospect of a romantic relationship, luring victims into depositing large sums of money into cryptocurrency ATMs. The scammers typically made initial contact through phone calls, emails, or social media, and then moved the conversation to encrypted messaging apps to avoid detection. Once the money was deposited, it became nearly impossible to recover, as the transactions were untraceable.

The number of cryptocurrency ATMs in Tasmania has surged from just one in 2021 to over 20 in 2025, providing scammers with an additional avenue to defraud unsuspecting individuals. These machines, which resemble regular cash ATMs, allow users to buy and sell cryptocurrencies such as Bitcoin and Ethereum. The ease of use and anonymity offered by these ATMs make them an attractive tool for scammers, who can manipulate victims into depositing large amounts of money with the promise of future gains or the recovery of previously lost funds.

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 also been significant, with victims experiencing stress, anxiety, and a loss of trust in financial systems.

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 Australian dollars at a time, in an effort to curb scam activity. Additionally, the New Zealand Government has announced plans to ban crypto ATMs in the coming months to close loopholes for money laundering and terrorist financing.

Detective Sergeant Paul Turner from the Tasmanian Police Cyber Investigations Unit emphasized the importance of caution when dealing with cryptocurrency ATMs. He advised anyone who is contacted by an unknown individual and asked to send money via these machines to "stop and think," as it is almost certainly a scam. Turner also urged anyone with concerns to report suspected scams to the police immediately. The warning serves as a reminder of the risks associated with cryptocurrency ATMs and the need for increased vigilance and regulation to protect potential victims from falling prey to these fraudulent activities.