Tasmania Loses AUD 2.5 Million to Crypto ATM Scams

In a significant development, Tasmania has become the latest region to fall victim to a series of crypto ATM scams, with 15 individuals identified as victims. The collective amount lost in these scams was AUD 2.5 million, with approximately one-third of this sum, around AUD 592,000, deposited directly into crypto ATMs. This incident highlights a growing trend of illicit fund transfers and scam operations facilitated through these machines.

The number of crypto ATMs in Tasmania has surged dramatically, from just one in 2021 to 20 in 2025. This rapid increase reflects not only a growing interest in cryptocurrencies but also an escalating vulnerability to scams. Detective Sergeant Paul Turner noted that victims are often subjected to intimidation, pressure, or emotional manipulation, particularly in romance or fake investment scams. Many victims were directed to use crypto ATMs after encountering resistance from their banks, indicating that scammers are exploiting gaps in financial oversight.

Turner emphasized the importance of heeding advice from financial institutions and seeking guidance from trusted sources when in doubt. He warned that requests to deposit cash into cryptocurrency ATMs, especially those accompanied by high-pressure deadlines or urgent tones, are likely scams. The investigation revealed that the top 15 users of crypto ATMs in the state were all victims of these scams, underscoring the need for heightened vigilance and stricter regulations.

The Australian Federal Police and the financial intelligence agency AUSTRAC have launched a nationwide enforcement initiative to curb the criminal exploitation of crypto ATMs. This move comes as Australia's crypto ATM network has expanded to nearly 1,900 machines, making it the third-largest globally. The new rules and transaction limits introduced by AUSTRAC for crypto ATM operators, effective June 3, aim to better combat such scams. The agency has also refused to renew the registration of a local crypto ATM operator, Harro’s Empires, placing operating conditions, including transaction limits, on them.

The rapid growth of Tasmania's crypto ATM network, from just one machine in 2021 to over 20 today, underscores the need for heightened vigilance. The scammers' tactics, which include promises of lucrative investments, romantic relationships, and pleas for assistance, have been effective in manipulating victims. The investigation found that the 15 victims had suffered combined losses of AUD 2.5 million, including about AUD 900,000 deposited to cryptocurrency ATMs.

The crackdown on crypto ATM scams in Tasmania is part of a broader international effort to combat the misuse of these machines. Authorities in various regions have implemented stricter regulations and monitoring to prevent money laundering and fraud. In the US, Spokane, Washington, has banned crypto ATMs entirely, citing their use in scams targeting vulnerable residents. Lawmakers in the US Senate are also attempting to tighten laws on a state and local level, with one attempt led by Illinois Senator Dick Durbin. The proposed Crypto ATM Fraud Prevention Act aims to protect the public while limiting inconvenience for law-abiding users. New users would be prevented from spending more than AUD 2,000 a day at one of these machines, rising to AUD 10,000 in a 14-day period.