A nationwide law enforcement operation has led to the identification of 90 scam victims, money mules, and suspected offenders who topped the list of crypto ATM users.
Analysts from AUSTRAC's Cryptocurrency Taskforce examined the profiles of the most prolific crypto ATM users in each state, based on the value of their transactions, and identified dozens of cases they believed could be linked to scams or fraud.
AUSTRAC then referred the cases to relevant law enforcement agencies across federal, state and territory police in a joint operation focused on protecting Australians from illicit crypto ATM activity.
As a result of these referrals, police contacted 90 individuals and identified the majority as scam victims or money mules who had been coerced into moving dirty money through crypto ATMs.
Further investigations remain ongoing in relation to some of the other crypto ATM users.
AUSTRAC CEO Brendan Thomas said analysts discovered that many of the top transactions in each state involved illegal activity.
"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," Mr Thomas said.
"We came across a woman in her 70s who had deposited more than $430,000 into crypto ATMs after falling victim to romance and investment scams. Tragically, she has no way of recovering that life changing amount of money.
"Sadly she's not the only one. The taskforce identified another women in her 70s who was conned after seeing what she thought was a legitimate advertisement about a trading firm offering a sizeable return on investment. She lost over $200,000.
"It's hard to hear these stories but now we have a better picture of the harms being perpetrated through crypto ATMs, we are better placed to take action, including working with the industry to harden the sector against criminal misuse."
The national operation was led by NSW Police with support from AUSTRAC and the Australia-New Zealand Crypto Practitioners Working Group (ANZCPWG).
The AFP-led Joint Policing Cybercrime Coordination Centre (JPC3) is coordinating a national prevention and education campaign.
The operation comes just a fortnight after AUSTRAC announced it had imposed minimum standards on crypto ATM providers. These include a $5,000 limit on cash deposits and withdrawals, enhanced customer due diligence obligations, mandatory scam warnings, and better transaction monitoring.
"For anyone considering using a crypto ATM - if someone asks you to deposit cash into one of these machines, think twice. Sending money to a wallet you don't control likely means you'll lose it," Mr Thomas said.
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