- Australian authorities identified over 90 high-usage crypto ATM users in a nationwide sweep, uncovering widespread links to scams and fraud, mostly involving unsuspecting victims.
- Among the 21 flagged cases, investment fraud and romance scams were prevalent, most notably a 77-year-old widow who lost over AU$430K over two years to a fake online relationship.
- Crypto ATMs, due to their anonymity and ease of use, have become a tool for fraud. In response, AUSTRAC is tightening oversight of ATM operators across Australia’s 1,800+ machines.
Australian police have tracked over 90 high-usage crypto ATM users in a sweeping crackdown aimed at curbing scams tied to digital currency.
According to a report from the AFP, authorities combed through high-volume transactions nationwide, identifying 90 users tied to scams, fraud cases, or acting as unwitting money mules.
We suspected that a large volume of crypto ATM transactions were probably illicit. But disturbingly, our law enforcement partners found that almost all of the transactions we referred involved victims rather than criminals.
Brendan Thomas, AUSTRAC CEO,Of those flagged, 21 individuals were identified as either victims or perpetrators of investment fraud, and a lot of romance scams.
Related: Fed Drops ‘Reputational Risk’ Label in Bank Exams, Easing Path for Crypto Firms
Widow Loses Nearly AU$500K
Talking about romance scams in Australia, one of the most jarring examples is a woman in her 70s who lost more than AU$430K over two years to a scammer posing as her online boyfriend.
As reported by ABC Australia, the scam began on a dating app. Olivia (not her real name for security reasons) was contacted by a man claiming to be a Belgian national working overseas. After several months of daily contact, he convinced her to invest in Bitcoin, flashing fabricated documents showing rapid returns.
Then, the man would coach Olivia through her first transaction by phone. She says she became “quite an expert at using the bitcoin ATM”. Sending money became a routine: she would withdraw bundles of cash from a traditional ATM, then feed it into crypto machines across Sydney.
“The worst part was having to tell my daughter that I’d actually given my life savings, that had taken me 40 years to earn, and [it] took him 18 months to get,” she told authorities.
Crypto ATMs, while resembling standard cash machines, allow users to convert physical cash directly into cryptocurrencies—without a bank, wire, or name attached. This convenience has made them a preferred tool for fraud operations.
Hence, AUSTRAC has introduced tighter controls on ATM providers, citing compliance lapses across an expanding network of over 1.800 machines.
Related: Strategy Adds US$26M in Bitcoin, Marking Slower Pace in Saylor’s Buying Spree
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