Issuing a statement, Tasmania Police Cyber Investigations revealed that the top 15 users of cryptocurrency ATMs across the state were victims of sophisticated scams, with collective losses amounting to AUD 2.5 million (USD 1.6 million).
According to authorities, over AUD 592,000 of that total was funneled directly through crypto ATMs.
Tasmania Police’s Cyber Investigations Unit has now joined a broader nationwide effort to curb the misuse of cryptocurrency for criminal purposes.
The Tasmanian victims were typically targeted by scammers who manipulated them into using crypto ATMs after traditional banks flagged their transactions as suspicious.
Detective Sergeant Paul Turner said:
“Victims are being manipulated, intimidated, and pressured into investing in fake investment and romance scams. “In many cases, banks intervened, but the scammers redirected victims to use crypto ATMs instead.”
Turner said the scams often involve significant amounts, causing lasting damage. Some victims have been forced to sell assets, delay retirement, or rely on pensions after being defrauded.
The crackdown comes in the wake of a national enforcement initiative led by the Australian Federal Police and AUSTRAC, Australia’s financial intelligence agency.
In early June, AUSTRAC introduced new operational rules and transaction limits for crypto ATM operators, aimed at preventing fraud and protecting consumers.
Turner also noted the rapid growth of crypto ATMs in Tasmania. While the state had only one crypto ATM in 2021, that number has since surged to over 24 machines operating in Tasmania.
From Growth to Crackdown
Australia now ranks as the world’s third-largest market for Bitcoin and crypto ATMs, trailing only the United States and Canada.
The country hosts more than 1,890 machines. A steep increase from just 67 in August 2022. Major providers include Localcoin (807 ATMs), Coinflip (691), and Bitcoin Depot (212).
Internationally, other governments are taking similar steps to regulate crypto ATM use.
On Thursday, New Zealand banned the devices altogether and imposed new limits on overseas cash transfers to fight money laundering and financial crime.
In the United States, Spokane, Washington recently became the latest city to ban crypto ATMs, citing rampant fraud. Existing machines are being removed, with no new installations permitted.
Police are urging Australians to remain vigilant and cautious.
“If you are asked to deposit cash into a cryptocurrency ATM by someone you’ve never met in person, or the offer comes with a high-pressure deadline or urgent tone, then it is likely a scam.” Turner warned.
However, how much crypto scam can be combatted by banning ATMs is yet to be seen.