Cryptocurrency ATMs, which let people turn cash into digital currencies like Bitcoin, are now found in everyday places across Australia—petrol stations, convenience stores, and even takeaway shops. But while these machines seem harmless, they have become tools for scammers and criminals to steal millions of dollars from Australians, especially older people.
Millions Lost and Older Australians Targeted
Over the past 12 months, Australians have reported losing $3 million to scams involving crypto ATMs. According to the Australian Cyber Security Centre, the most common scams are fake investments, threatening emails, and online romance traps. These scams mostly affect women over the age of 51.
One particularly tragic case involved an elderly man who was scammed out of $1.4 million. He was told to withdraw money from his bank and put it into several crypto ATMs. The money was then sent to a digital wallet controlled by scammers, making it nearly impossible to get back.
According to the Australian Federal Police, once the money becomes cryptocurrency and leaves the country, it usually vanishes into global money-laundering networks. Assistant Commissioner Richard Chin said these are not small-time scams—they are well-planned operations, often run by organised criminal groups.
Reports show that people aged over 50 are behind nearly 72% of the money spent through crypto ATMs, and those aged between 60 and 70 make up almost one-third of the total value. The scams often begin online. Victims are contacted through emails or fake job offers, and then guided step-by-step—often over the phone—on how to use the machines.
AUSTRAC Cracks Down With New Rules
Australia’s financial crime watchdog, AUSTRAC, has stepped in after a major investigation into the use of crypto ATMs. CEO Brendan Thomas announced that the machines are being used not just for scams but also for money laundering and other illegal activities. After studying the operations of nine crypto ATM companies, AUSTRAC introduced strict new rules.
From now on, users can only deposit or withdraw up to $5,000 per transaction through these machines. Crypto ATM operators must also:
- Carry out stronger checks to verify customers’ identities,
- Display clear scam warnings,
- Monitor all transactions more closely.
AUSTRAC also refused to renew the license of a South Australian company called Harro’s Empires. It was found to be at risk of being used for criminal activity, so its four crypto ATMs were shut down.
Mr. Thomas said these steps were necessary to protect everyday people and make it harder for criminals to misuse the system. He stressed that the rules were designed to help stop scams and limit the damage caused by them.
Explosive Growth and Criminal Abuse
Crypto ATMs are growing rapidly in Australia. In 2019, there were only 23 machines across the country. Today, there are more than 1,800. Australia now has the third-highest number of crypto ATMs in the world, just behind the United States and Canada.
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AUSTRAC says this growth is troubling because it may be linked to illegal activity. It estimates that around $275 million moves through these machines each year, spread over about 150,000 transactions. Of these, about 99% are cash deposits used to buy digital currencies like Bitcoin, Tether, and Ethereum.
Mr. Thomas warned that about one in every ten transactions could be related to scams, drug trafficking, or organised crime. He said these machines are also being used to fund illegal purchases, including drugs, and help hide large sums of money through money laundering.
The industry’s representative body, the Digital Economy Council of Australia (DECA), agrees that scams are a problem. But its chair, Paul Derham, said many users are just trying to buy cryptocurrency because banks often block crypto purchases. He argued that the $5,000 limit may not be the best solution and could lead customers to spread their money across multiple machines to get around the rules.
Still, with huge profits at stake—operators charge up to 20% in fees per transaction—the market is attracting global companies like CoinFlip, Localcoin, and Bitcoin Depot.
As the crypto ATM industry continues to expand, authorities like AUSTRAC and the AFP are scrambling to stop criminals from taking advantage of it—and to protect Australians from losing their hard-earned money.
