Australian authorities are shedding new light on the growing abuse of cryptocurrency ATMs, revealing heartbreaking cases of fraud — including an elderly widow who lost $281,000 in a crypto-fueled romance scam. The case underscores the dark side of crypto and its growing role in facilitating scams targeting vulnerable individuals.
AUSTRAC Investigation Uncovers Widespread Crypto ATM Misuse
Following a months-long operation, AUSTRAC’s cryptocurrency taskforce, in coordination with federal and state law enforcement, identified 90 individuals involved in suspicious activity. Many were not criminals, but rather scam victims or unwitting money mules, lured into fraudulent schemes through deception and emotional manipulation.
Among the most distressing cases was a woman in her 70s who was targeted by both romance and investment scammers. Over time, she was tricked into depositing hundreds of thousands of dollars into crypto ATMs across Australia. Another elderly woman lost more than $130,000, believing she was investing in a legitimate platform.
“It’s hard to hear these stories,” said AUSTRAC CEO Brendan Thomas, “but now we have a better picture of the harms being perpetrated through crypto ATMs.”
New Regulations to Combat Crypto ATM Abuse
In response to the findings, AUSTRAC has introduced new operational standards for cryptocurrency ATM providers, including:
- A $5,000 cash transaction limit
- Mandatory scam alerts
- Enhanced customer verification and transaction monitoring
These measures aim to protect vulnerable individuals and limit opportunities for fraud and money laundering via crypto ATMs.
Older Australians Hit Hardest
Crypto scams in Australia are rising at an alarming rate, particularly those involving cryptocurrency ATMs — now numbering over 1,600 nationwide. From January 2024 to January 2025, Australians lost over $3 million to ATM-related scams. Yet experts warn the true toll may be significantly higher.
According to the Australian Federal Police (AFP), nearly half of all crypto scam victims are aged over 51, with average losses exceeding $20,000. Romance scams and fake investment schemes remain the most common tactics.
In an effort to boost public awareness, the AFP’s cybercrime division (JPC3) is launching a national campaign to educate the public on the risks of using crypto ATMs under duress, misinformation, or false promises.
