Tasmanian police find top 15 crypto ATM users are scam victims

The Australian island state of Tasmania has become the latest to join a country-wide crackdown on crypto ATM scammers.

Tasmania Police Cyber Investigations said on Friday that it found the top 15 users of crypto ATMs in the state were all victims of scams, with combined losses of 2.5 million Australian dollars ($1.6 million) Over a third, around $592,000, was deposited into crypto ATMs.

The announcement comes just weeks after Australian Federal Police and Australia’s financial intelligence agency, AUSTRAC, said they were leading a national enforcement operation to clamp down on criminal use of crypto ATMs.

Victims pressured to use crypto ATMs by scammers

Detective Sergeant Paul Turner of the Tasmanian police said that during the operation, they found in many cases that the victims were directed to crypto ATMs by scammers after regular financial institutions raised concerns about the transactions.

“Victims are being manipulated, intimidated and pressured into investing in fake investment and romance scams,” Turner said.

He added that the scams are often high value and can have “severe and lifelong impacts on victims,” such as forcing them to become dependent on pensions, to sell assets or to delay retirement.

“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.”

The latest crackdown follows AUSTRAC rolling out new operating rules and transaction limits for crypto ATM operators on June 3 to combat scams. Last December, the agency also flagged crypto as a priority for 2025

Tasmanian crypto ATMs on the rise

The number of ATMs in Tasmania has grown significantly. Turner said that in 2021, there was only one ATM, but that number has since increased to over 20. Coin ATM Radar data shows there are 24 in the state

In 2021, Tasmania only had one crypto ATM; now it has at least 24. Source: Coin ATM RadarAustralia is the third-largest hub for Bitcoin (BTC) and crypto ATMs, behind the US and Canada, with over 1,890 ATMs, up from 67 in August 2022

Leading crypto ATM providers in Australia include Localcoin, with 807 in its stable; Coinflip, with 691 ATMs; and Bitcoin Depot, with 212.

Related: Australia to test CBDCs, stablecoins in next stage of crypto play

ATM crackdowns in other countries

Meanwhile, other countries are also trying to curb the criminal use of crypto ATMs.

On Thursday, New Zealand banned crypto ATMs and capped international cash transfers, which officials said was part of an effort to disrupt money laundering and organized financial crime.

In the US city of Spokane, Washington, the City Council on June 16 announced a complete ban on crypto ATMs, citing concerns over fraudsters using the devices. All existing kiosks are being removed, and new ones will be blocked from the area

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