- A months-long investigation by AUSTRAC has found widespread compliance failures by crypto ATM operators, which has resulted in stricter operation conditions being imposed.
- Australians over age 50 were found to be responsible for almost 72% of crypto ATM transactions by value, with those aged 60 – 70 alone accounting for 29%.
- Australia is currently the world’s fastest growing market for crypto ATMs, with the number of machines having exploded from 23 in 2019 to over 1,800 today.
An investigation by Australia’s financial crimes watchdog, AUSTRAC, has revealed widespread lack of compliance by crypto ATM (CATM) operators, resulting in one operator losing their registration and others being hit with operating conditions, such as transaction limits.
The investigation also found that older Australians are far and away the biggest users of CATMs, putting them at increased risk of falling victim to crypto scams and other crimes. AUSTRAC found that CATM users over the age of 50 account for almost 72% of transactions by value, with those aged 60-70 making up 29% of the total value put through CATMs.
AUSTRAC CEO, Brendan Thomas said that the months-long investigation identified “customer activity that bears the hallmarks of scams, fraud, and other illicit activity.”
The taskforce has uncovered disturbing trends which have confirmed that cryptocurrency ATMs are being used for scam/fraud-related transactions.
Brendan Thomas, AUSTRAC CEOThomas added that the widespread use of CATMs by older Australians is a “huge concern”, as there is growing evidence “that a large number of 60-70 year old users are victims of scam activity”.
According to data from Australian Cyber Security Centre, 150 Australians reported losing over $3 million to scams involving CATMs in 2024 — almost half the victims were aged over 51. Australia is the fastest growing market for CATMs in the world, with the number of machines having exploded from just 23 in 2019 to over 1,800 today.
Other jurisdictions with high numbers of CATMs are also seeing major scam losses. The US has over 30,000 crypto ATMs and a recent crime report from the FBI shows there were over 10,000 complaints about cryptocurrency ATM scams (a 99% increase from 2023), with more than US$246 million in losses. More than US$100 million in losses were experienced by the oldest cohort — people aged over 60 years old.
Related: “Worrying Trends” For Crypto ATM Operators Ahead Of New Anti-Money Laundering Laws, AUSTRAC Warns
$5K Limit on Cash Deposits Imposed by AUSTRAC
AUSTRAC is now working with its law enforcement partners and CATM operators to implement strategies to reduce fraud and scams, according to Thomas.
“As part of AUSTRAC’s work to protect the financial system from criminal abuse, we’ve placed a number of conditions on crypto ATM operators, including a $5,000 limit on cash deposits and withdrawals, enhanced customer due diligence obligations, mandatory scam warnings, and requirements for more robust transaction monitoring,” he said.
These operating conditions apply specifically to CATMs, however AUSTRAC said it expects regular crypto exchanges to also consider implementing similar protections if they allow customers to purchase crypto using cash.
Following the investigation, one small and particularly shady South Australian CATM operator, Harro’s Empire, failed to have its registration renewed after exhibiting what AUSTRAC claims were “ongoing risks that its CATMs could be exploited”.
Speaking to the ABC, Thomas said the Australian crypto industry needs further regulation to protect consumers.
“Our taskforce is working to understand the money-laundering risks of cryptocurrency in Australia and is collaborating closely with industry to determine the controls we need,” he said.
We need more comprehensive regulation of the crypto industry so it can grow legitimately in Australia and ensure proper consumer protections are in place.
Brendan Thomas, AUSTRAC CEOOldies Coerced into Using CATMs by Scammers
In a report from the ABC an anonymous petrol station worker claimed to see “two or three” older people depositing cash into CATM at his workplace every week. This source claimed that the oldies were often receiving “step-by-step” instructions over the phone to help them deposit the cash.
The ABC report also included an account from a scam victim who was coerced into laundering cash through a CATM after finding what he believed was a legitimate work-from-home job.
His employer started requesting that he withdraw money supposedly deposited by his employee and deposit it into a CATM. “I’d never used one of those machines before — it took me about half an hour to figure it out,” the victim said.
AFP assistant commissioner for cyber command Richard Chin, also told of a case in which an elderly man lost AUD$1.4 million to a romance scam involving the use of a CATM.
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“That money goes into an elaborate web of global money laundering and ultimately ends up back with the criminal organisations orchestrating these scams and running them at an industrial scale around the world,” Chin said.
Chin also warned that once Australian dollars are converted into crypto and sent to a digital wallet controlled by these criminals, the digital assets are nearly impossible to get back.
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