One of the more than 1800 cryptocurrency ATMs now operating around the country. Photo: AFP.
Police are sounding the alarm across the country, including in the ACT, and warning of scams involving the use of cryptocurrency ATMs.
In some cases, victims may have lost hundreds of thousands of dollars.
While cryptocurrency ATMs look like regular automatic teller machines, they allow users to convert cash into cryptocurrency before sending it to an account.
They are becoming increasingly common, growing from 23 ATMs across Australia in 2019 to now more than 1800, according to the Australian Federal Police (AFP).
“The increasing use of cryptocurrency ATMs is making it easier for overseas criminals to access funds they con from victims through a range of scams,” an AFP spokesperson said.
Over 2024, the Australian Signals Directorate’s ReportCyber received 150 reports about cryptocurrency ATM-related scams, with losses exceeding $3 million.
Recently, police contacted more than 90 Australians, including scam victims and suspected offenders, as part of a crackdown on the criminal use of cryptocurrency ATMs.
Investigators reached out to the top users of cryptocurrency ATMs, who had been identified as being at high risk of being used for illicit activity or scam victimisation across the country, including in the ACT.
“Several suspected victims of investment and romance scams were contacted, with some having deposited hundreds of thousands of dollars in recent months,” the AFP spokesperson said.
Other victims said cybercriminals had directed them to the ATMs after banks identified the crypto customers as likely scam victims and stopped them transferring funds from their bank accounts.
“Police also engaged with 21 individuals across Tasmania, ACT and NSW who were either suspected victims of cryptocurrency ATM-related scams, or believed to have been allegedly involved in illicit activities related to the use of cryptocurrency ATMs,” the AFP spokesperson said.
The spokesperson said public education was essential, with the Australian Transaction Reports and Analysis Centre (AUSTRAC) noting most cryptocurrency ATM users were older than 50 years of age and accounted for more than 70 per cent of the total value of transactions.
“When police spoke to suspected scam victims identified during the investigation, only some acknowledged they had been impacted by a cybercrime.”
Cryptocurrency ATMs look like regular automatic teller machines, but allow users to convert cash into cryptocurrency before sending it to an account. Photo: AFP.
NSW Police’s Detective Superintendent Matthew Craft said deterring vulnerable victims from transferring money using cryptocurrency ATMs remained a priority for police.
“In circumstances where a person you don’t know, or have only met on the internet, requests you transfer funds using a cryptocurrency ATM you are likely being scammed,” he said.
AFP Commander Graeme Marshall said scammers were exploiting cryptocurrency ATMs as anonymous cash pipelines.
“Victims are being manipulated into feeding thousands of dollars into cryptocurrency ATMs through fake promises of love, employment, investment, or to make quick, easy profits,” he said.
“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.
“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 to ReportCyber.”
AUSTRAC Law Enforcement national coordinator Markus Erikson said intelligence showed the ATMs were attractive to criminals because they allowed for fast, anonymous transactions, making them an ideal method for scam or money mule activities.
“It’s heartbreaking to hear of people in their 60s and 70s losing their life savings through romance or investment scams. Once the money is gone, it’s almost impossible to get it back,” he said.
Common cryptocurrency scams
- Romance scams: Fraudsters pose as online love interests and pressure victims into sending money.
- Investment scams: Scammers promise guaranteed high returns – usually with a fake cryptocurrency opportunity.
- Government or utility scams: Victims are told they owe money and must pay immediately via cryptocurrency.
- Tech support scams: Criminals pose as Apple, Microsoft or bank representatives and trick victims into ‘securing’ their funds.
- Job scams: Fake job offers ask potential victims to pay in cryptocurrency to access training, unlock commissions or secure roles.
AFP’s advice on what to do if you’ve been scammed
- Cut all contact with the scammer immediately.
- Notify your digital currency exchange provider or bank immediately.
- Don’t send any more money.
- Report it to police by clicking here and to Scamwatch by clicking here.
