Tasmania Crypto ATM Scams Cost Victims $2.5 Million Since 2021

Tasmania Police recently conducted an investigation into the most active users of cryptocurrency ATMs in the region, revealing that all 15 individuals contacted had fallen victim to various scams. The investigation uncovered no legitimate activity among these high-volume users, with combined losses amounting to $2.5 million, including $900,000 deposited through cryptocurrency ATMs. Since 2021, the number of crypto ATMs in Tasmania has surged from one to 20 machines, providing more opportunities for scammers to exploit unsuspecting victims.

Detective Sergeant Paul Turner highlighted the severe and long-term impacts of high-value scams on victims and their communities. These scams often involve manipulation, intimidation, and coercion tactics employed by international criminal syndicates. Common types of scams include romance scams, investment scams, government impersonation scams, and tech support scams, among others. Victims are often directed to crypto ATMs after banks implement friction in transactions, making it easier for scammers to exploit their victims.

The investigation also revealed that the reduced economic activity resulting from these scams has a significant impact on the welfare of Tasmania. Red flags for potential scams include solicitations by unfamiliar individuals, tight timing, and promised profits guaranteed, which usually signal investment scams targeting vulnerable groups. The global expansion of crypto ATMs continues despite regulatory concerns, with over 1,000 new machines installed worldwide. Australia, in particular, has seen significant growth in the number of crypto ATMs, adding 491 new machines during the first half of the year.

In response to the increasing number of scams, Australia has introduced new operating rules and transaction limits for crypto operators. A $5,000 cap applies to cash deposits and withdrawals at machines, along with enhanced customer due diligence and mandatory scam warnings. However, despite these measures, Australians have lost over $3 million to crypto ATM scams since January, with 150 unique scam reports filed and average losses exceeding $20,000. Nearly half of the victims were over 51 years old, with a majority being female.

Law enforcement operations have identified 90 scam victims and suspected money mules, with one woman in her 70s losing over $430,000 through romance scams. Investment fraud and extortion emails commonly target crypto ATM users, and Detective Sergeant Turner cautions people to heed bank warning messages. Family, friends, and the police can be stabilizing resources when victims are being misled. Rushed timescales and urgent language usually indicate customer scams, and cash deposit requests from strangers are often a sign of fraudulent activity.