Rising Crypto ATM Scams in Australia: What You Need to Know
Australia is witnessing a surge in scams involving cryptocurrency ATMs, with its financial watchdog and federal police raising alarms. These scams are significantly impacting individuals across the nation, particularly the elderly, and have prompted regulatory bodies to urgently devise and implement protective measures.
Escalating Reports of Crypto ATM Scams
Between January 2024 and January 2025, an alarming number of 150 individuals reported incidents of crypto ATM fraud to ReportCyber. The cumulative losses from these scams amounted to over A$3.1 million (approximately US$2 million). The older demographic in Australia is frequently targeted, prompting regulators to advocate for more robust security protocols.
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Introducing New Transaction Limits for Crypto ATMs
AUSTRAC, the Australian Transaction Reports and Analysis Centre, has introduced a pivotal regulation capping cash transactions at cryptocurrency ATMs to A$5,000 (about US$3,250). ATM operators are now required to display clear warnings about scams, enhance transaction monitoring, and conduct meticulous checks on their customers.
These regulatory measures were officially enforced on June 3. While initially applicable solely to ATM providers, AUSTRAC recommends that cryptocurrency exchanges consider adopting similar protocols, especially if they facilitate cash purchases of cryptocurrencies. CEO Brendan Thomas emphasized that these regulations will undergo continuous evaluation and adjustments as necessary to ensure their effectiveness.
Elderly Australians: A Vulnerable Target
According to AUSTRAC’s task force, a significant portion of individuals utilizing cash to purchase cryptocurrencies at ATMs are over the age of 50, with approximately 72% of transaction values originating from this age group. This is a major concern as many in their 60s and 70s fall prey to scams, often being misled into sending money to crypto ATMs as part of fraudulent schemes to “verify” investments or recover supposed stolen funds.
Tragically, many victims remain unaware of the fraud until it is too late. This situation underscores AUSTRAC’s push for stringent “know your customer” checks to be implemented directly at ATM kiosks.
The Challenge of Underreporting
AFP Commander Graeme Marshall highlights a significant issue: many victims of these scams fail to report their losses. Feelings of embarrassment or uncertainty about where to seek assistance often deter them from sharing their experiences. Marshall urges individuals who have been scammed to discuss their experiences with family and friends to prevent others from falling into the same traps.
Currently, only 150 reports have been filed over the past year, but the Australian Federal Police (AFP) suspects that this figure barely scratches the surface, indicating a potentially larger unreported problem.
Proliferation of Crypto ATMs in Australia
In August 2022, Australia housed a modest number of 67 crypto ATMs. However, by June 2025, that number had skyrocketed to nearly 1,820, positioning Australia as the third-largest market worldwide for these machines. Within a single year, nearly 150,000 cash-based transactions were conducted, transferring approximately A$275 million (around US$178 million) into cryptocurrencies such as Bitcoin, Ether, and various stablecoins.
Key players like Localcoin, Coinflip, and Bitcoin Depot are leading the expansion with 753, 700, and 182 machines respectively. The rapid increase in ATM numbers amplifies the risk of scams, particularly if operators neglect to maintain stringent oversight.
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