Authorities Crack Down on Crypto ATM Crime Nationwide

Police have contacted more than 90 Australians, including scam victims and suspected offenders, as part of a crackdown on the criminal use of cryptocurrency ATMs.

Cryptocurrency ATMs look like regular ATMs but allow users to convert cash into cryptocurrency and send it quickly and easily. There were just 23 operating across Australia in 2019, but there are now more than 1800.

Investigators reached out to the top users of cryptocurrency ATMs which AUSTRAC identified as being at high risk of being used for illicit activity or scam victimisation, in New South Wales, the Northern Territory, Queensland, South Australia, the Australian Capital Territory, Western Australia and Tasmania.

NSW Police Force led the operation, with support from AUSTRAC and the Australia-New Zealand Crypto Practitioners Working Group (ANZCPWG). Additionally, the AFP-led Joint Policing Cybercrime Coordination Centre (JPC3) coordinated the national prevention and education campaign.

Several suspected victims of investment and romance scams were contacted, with some having deposited hundreds of thousands of dollars in recent months. Included were people who advised they had been directed by cybercriminals to use the ATMs after banks identified them as likely scam victims and stopped them transferring funds from their bank accounts.

Police offered their assistance to the suspected scam victims to protect them from losing more money and also promoted education materials about the warning signs of scams.

Police also engaged with 21 individuals across TAS, 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.

One person in WA was charged with property laundering offences, while four other people around the country were issued with formal cautions. These came amid suspicions they had used cryptocurrency to purchase drugs, or were acting as so-called 'money mules', allowing criminals to transfer and access criminally obtained funds.

Police believe some of the suspected mules were scam victims who either unwittingly assisted criminals, or knowingly transferred funds to recover their own stolen money.

Data released by AUSTRAC identified about $275 million is being moved through cryptocurrency ATMs in Australia every year, with intelligence suggesting many transactions are scam-related.

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.

In the 12 months prior to 1 January, 2025, ReportCyber received 150 reports from Australians about cryptocurrency ATM-related scams, with losses exceeding $3 million.

These reports have helped prompt the rollout of phase two of the operation - engaging with businesses and venues that host cryptocurrency ATMs to encourage them to help protect cryptocurrency ATM users from scams.

Venues that host cryptocurrency ATMs are being provided with to raise awareness about the risks of cryptocurrency-enabled scams. The pamphlets include information about how to report and seek help if they have already transferred money under what turned out to be a scam.

Public education is essential, with AUSTRAC noting most cryptocurrency ATM users are older than 50 and account 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.

As the leading agency New South Wales Police Force Detective Superintendent Matthew Craft, Commander of the State Crime Command's Cybercrime Squad, said deterring vulnerable victims from transferring money using cryptocurrency ATMs remained a priority for the NSWPF.

"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," Det Supt Craft said.

"The use of cryptocurrency ATMs carries with it a level of risk and users are encouraged to consider a legitimate and reputable registered digital currency exchange as an alternative."

AFP Commander Graeme Marshall said scammers were exploiting cryptocurrency ATMs as anonymous cash pipelines.

"While these machines were designed for the fast exchange of digital money, they've quickly become tools to conceal the transfer of money," Commander Marshall said.

"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.

"This nationwide action has been a significant undertaking for law enforcement across the country to not only disrupt scammers but protect potential victims from handing over their hard-earned money.

"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 tackling illicit activity in the cryptocurrency sector was a priority for the agency and its law enforcement partners.

"Our intelligence shows these machines are attractive to criminals as they allow for fast, anonymous transactions, making them an ideal method for scam or money mule activities," Mr Erikson said.

"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.

"AUSTRAC is committed to reducing the misuse of cryptocurrency ATMs and has recently placed new conditions on operators, including a $5000 transaction limit, to help protect the public by deterring criminals from directing people to use the machines."

Queensland Police Service Detective Acting Superintendent Vince Byrnes, from the Financial and Cyber Crime group, said investigations uncovered a range of concerning behaviours.

"Investigations by detectives from the Queensland Police Service's Cybercrime Unit identified a man using cryptocurrency ATMs to facilitate the purchase of illicit drugs. It was identified that parcels were regularly delivered to an Australia Post parcel locker for that purpose," Det a/Supt Byrnes said.

"Inquiries with the cryptocurrency ATM provider resulted in the provider conducting enhanced customer due diligence. Consequently, the man was blocked by the cryptocurrency ATM provider from using the cryptocurrency ATM, and Australia Post were alerted to the misuse of their facilities in this case.

"As part of the QPS' commitment to keeping the community safe, throughout June members of the Queensland community will see national messaging material in the vicinity of cryptocurrency ATMs. The material provides cautionary information and support for cryptocurrency ATM users who may have been victimised by scams and related offending."

Victoria Police Crime Command Detective Superintendent Tim McKinney said it was important that members of the community were aware of these scams in order to protect themselves falling victim.

"Where something seems like it's too good to be true, it almost always is," Det Supt McKinney said.

"People need to be alert to a range of scams that include money being put through crypto ATMS and if someone asks them to do this, they should really question why. Once your money is gone to a scammer, it is gone forever.

"There's a great range of resources available online to help people educate themselves about the risks and what they should do if they believe they have fallen victim to a scam. I encourage people to read these and also make sure any vulnerable family members, such as older people, are aware of these scams."