Tasmania has become the latest Australian state to intensify efforts against crypto ATM scams after police revealed that the top 15 crypto ATM users in the region lost a combined AUD 2.5 million (around USD 1.6 million) to fraudsters.
Key Takeaways:
Tasmania cracks down on crypto ATM scams after top users lost AUD 2.5 million to fraudsters. Scammers pressure victims to use crypto ATMs once banks flag suspicious transactions. Australia’s crypto ATM network has surged to nearly 1,900 machines, making it the third-largest globally.Nearly a quarter of that amount, approximately AUD 592,000, was deposited directly into cryptocurrency ATMs, according to Tasmania Police Cyber Investigations.
The move follows a national enforcement initiative led by the Australian Federal Police and the financial intelligence agency AUSTRAC, aimed at curbing criminal exploitation of crypto ATMs across the country.
Scammers Push Victims to Use Crypto ATMs in Tasmania
Detectives report that scammers often pressure victims into using crypto ATMs after traditional financial institutions flag suspicious transactions.
“Victims are being manipulated, intimidated, and pressured into investing in fake investment and romance scams,” said Detective Sergeant Paul Turner.
He warned that many of these scams involve large sums and can have devastating long-term effects on victims, including financial ruin and dependence on government support.
“If you are asked to deposit cash into a cryptocurrency ATM by someone you’ve never met in person, or the offer comes with a high-pressure deadline or urgent tone, then it is likely a scam,” Turner said.
AUSTRAC has recently introduced new rules and transaction limits for crypto ATM operators, effective June 3, to better fight scams. Crypto also remains a top priority for the agency heading into 2025.
Tasmania’s crypto ATM network has grown rapidly, from just one machine in 2021 to over 20 today. Coin ATM Radar data confirms 24 machines in the state.
Nationwide, Australia ranks third globally for Bitcoin and crypto ATMs, trailing only the US and Canada, with nearly 1,900 units, up sharply from 67 a year ago.
Major operators include Localcoin, Coinflip, and Bitcoin Depot.
More Countries Clamp Down on Crypto ATMs
Internationally, authorities are also cracking down on crypto ATM misuse.
Last week, New Zealand banned crypto ATMs and restricted international cash transfers to combat money laundering.
In Australia, AUSTRAC recently introduced stricter rules for crypto ATM operators, including tighter cash limits and monitoring.
Last month, the regulator refused to renew the registration of a local crypto ATM operator, Harro’s Empires. The agency placed operating conditions, including transaction limits, on them.
In the US, Spokane, Washington, has banned crypto ATMs entirely, citing their use in scams targeting vulnerable residents.
Lawmakers in the US Senate are also attempting to tighten laws on a state and local level, with one attempt led by Illinois Senator Dick Durbin.
He has introduced the Crypto ATM Fraud Prevention Act, which would bring in legislative measures designed to protect the public — while attempting to limit inconvenience for law-abiding users.
New users would be prevented from spending more than $2,000 a day at one of these machines, rising to $10,000 in a 14-day period.
The post Australia’s Tasmania Joins Nationwide Crackdown on Crypto ATMs as Scam Losses Hit $1.6 Million appeared first on Cryptonews.
