Crypto ATM scams run rampant in Australia, scammers target older victims

Crypto ATM scams are becoming a major problem in Australia, with the latest case costing victims $2.5 million.

Scammers are increasingly exploiting crypto ATMs to target vulnerable individuals, particularly the elderly, in a growing trend that’s raising alarms across Australia. In the latest reported case, 15 victims from Tasmania lost an estimated $2.5 million, local media reported on Friday, June 11.

According to Tasmania Police, many of the victims suffered “lifelong impact” from the losses. The average victim was 65 years old and lost approximately $165,000. In one case, a victim lost $750,000 through the scam.

These scams typically involve fraudsters convincing victims to deposit cash through a crypto ATM under false pretenses. Authorities say scammers employ threats, intimidation, and promises of high financial returns, often creating a false sense of urgency to manipulate their targets.

Crypto ATMs become a tool for scammers

Crypto ATMs are an increasingly favored method for fraudulent transfers. Once a victim sends crypto to a scammer’s wallet address, the transaction is irreversible, unlike standard bank transfers, which may offer recovery mechanisms.

Australian authorities have already noticed this problem and have reacted with tighter regulations. Earlier, on June 3, Australia imposed cash limits for crypto ATMs to curb this type of scam.

Some countries went even further, and on June 9, New Zealand announced a ban on crypto ATMs. In New Zealand’s case, the stated goal was to restrict the ability of criminals to convert ill-gotten cash into crypto.