Tasmania Loses $2.5 Million AUD to Crypto ATM Scams

Tasmania has been grappling with a surge in crypto ATM scams, with law enforcement recently uncovering that all of the top 15 users of these machines have fallen victim to fraudulent activities. These scams, which often involve romance or fake investment schemes, have resulted in a combined loss of $2.5 million AUD for Tasmanians. Notably, $592,000 of this amount was directly funneled through crypto ATMs, highlighting the severity of the issue.

The scams typically begin with scammers making initial contact through phone calls, emails, or social media before transitioning to encrypted messaging apps like WhatsApp or Telegram. Once trust is established, the fraudsters introduce either a romantic narrative or an investment opportunity promising high returns. Victims are then instructed to deposit cash into crypto ATMs, where the funds are converted to cryptocurrency and sent to the scammer’s wallet. By the time many victims realize they have been duped, the money is already gone.

Tasmania's crypto ATM landscape has expanded rapidly, from just one machine in 2021 to at least 24 this year. This growth has created more vulnerabilities for scammers to exploit. Crypto ATMs, which allow users to buy or sell cryptocurrencies like Bitcoin and Ethereum, are appealing to fraudsters due to their ease of use, anonymity, and lack of oversight. In many cases, victims were pressured to use these ATMs after mainstream financial institutions flagged their transactions as suspicious.

The revelation of these scams in Tasmania comes amid a broader national crackdown on crypto ATM abuse. In June 2025, AUSTRAC, Australia’s financial intelligence agency, introduced new compliance rules and transaction limits for ATM operators. These rules cap crypto ATM deposits at $5,000 AUD per transaction to discourage large scam transfers. AUSTRAC had already identified crypto misuse as a priority concern for the year, and the events in Tasmania underscore the urgency of this issue. Australia is currently the third-largest market for these ATMs globally, with over 1,890 machines, up from just 67 in August 2022.

Tasmania is not alone in addressing the darker side of crypto ATMs. In New Zealand, officials have announced a more aggressive ban on these machines, along with restrictions on international cash transfers. Similarly, the city of Spokane, Washington, has passed a complete ban on crypto ATMs, ordering the removal of all existing machines and blocking the installation of new ones. These measures reflect a growing global awareness of the risks associated with crypto ATMs and the need for stricter regulations to protect users from fraud.