Australian Police Crackdown on Crypto ATM Scams
Australian federal police have contacted over 90 Australians in a sweeping effort to combat criminal use of crypto ATMs. This initiative targets both victims of scams, such as pig butchering, and suspected offenders.
Notable Scams and Victims
One prominent case involves a 77-year-old widow who lost 433,000 Australian dollars ($281,947) to an online dating scam, as reported by Australia’s financial intelligence agency, AUSTRAC. The Australian public broadcaster ABC revealed that the widow was unaware of the deception by a Belgian man she had been dating online for two years until police informed her.
“Half Day’s Work” to Send Scammer Cash
The widow was persuaded by the scammer, whom she met on a dating app, to invest in Bitcoin (BTC) after being shown fraudulent documents claiming he had made 13,000 Australian dollars ($8,464) in a week.
Her initial transaction involved following the scammer’s instructions to withdraw cash from a regular ATM and then deposit it into a Bitcoin ATM. Over 18 months, she sent her entire life savings. At one point, she was carrying around 20,000 Australian dollars ($13,023) in cash, noting that the transfers took “half a day’s work,” and she became proficient at using the Bitcoin ATM.
“The worst part was having to tell my daughter that I’d actually given my life savings, which took me 40 years to earn, and it took him 18 months to get,” she lamented.
Another woman in her 70s fell victim after responding to a seemingly legitimate ad about a trading firm promising a significant return on investment, losing over $200,000, according to AUSTRAC CEO Brendan Thomas.
Police Action and Warnings
During the crackdown, Australian police targeted top users of crypto ATMs deemed at high risk for illicit activity or scam victimization. They reached out to 21 individuals suspected of being either victims of crypto ATM-related scams or involved in illicit activities linked to the machines.
“We suspected a large volume of crypto ATM transactions were illicit, but disturbingly, our law enforcement partners found that almost all the transactions we referred involved victims rather than criminals,” Thomas stated.
One person was charged with property laundering offenses, while four others received formal cautions on suspicion of using crypto to buy drugs or acting as money mules for criminals.
Some suspected mules were scam victims who either unknowingly aided criminals or knowingly transferred funds in attempts to recover their stolen money. The AFP noted that a few were reluctant to admit they had been deceived by cybercriminals.
In response to these scams, AUSTRAC implemented new operating rules and transaction limits for crypto ATM operators on June 3. Last December, the agency also prioritized crypto for 2025.
Fake Promises for Crypto
AFP Commander Graeme Marshall emphasized that scam victims are manipulated into depositing thousands into crypto ATMs with false promises of love, employment, investment, or quick profits.
“If you are guaranteed quick profits, if there is a high-pressure deadline or sense of urgency, and if you have never met the person before, cease contact immediately and report them,” he advised.
“We need to get the message out there: if someone, a business, or a government agency asks you to pay using cryptocurrency, do not send money.”
According to the AFP, Australia’s online cybercrime reporting system, ReportCyber, received 150 reports of scams involving crypto ATMs between January 2024 and January 2025, with losses exceeding 3.1 million Australian dollars ($2 million).
Image Credit: cointelegraph.com
