Authorities in Tasmania have uncovered a surge in crypto ATM-related scams that have led to multi-million-dollar losses for locals. According to a July 11 press release , Tasmania Police Cyber Investigations has identified that the top 15 users of crypto ATMs in the state are scam victims. None of the victims had used the machines for legitimate purposes such as personal investment, remittance, or routine asset transfers. Notably, the individuals were either directly defrauded or unknowingly worked as money mules in fraudulent schemes. Police said these 15 users have suffered combined losses of approximately 2.5 million Australian dollars (around $1.6 million), including nearly $900,000 deposited into cryptocurrency ATMs. More than a third of the total losses stemmed from cash transactions at such kiosks. Over the past years, the number of crypto ATMs in Tasmania has increased noticeably. Since 2021, when there was just one virtual currency kiosk in the island state, the number has risen to 24, according to data from Coin ATM Radar. “Victims in many cases were directed to crypto ATMs by the scammers after receiving friction from their financial institution when trying to transfer funds,” Detective Sergeant Paul Turner was quoted as saying. Scammers reportedly employ high-pressure tactics, emotional manipulation, and false promises of investment or romance to deceive targets. The financial fallout has, in some cases, forced victims to delay retirement, sell assets, or rely on pensions, Turner added. These individual financial setbacks, Turner warned, ultimately reduce consumer spending and strain public support systems, which eventually affect the local economy. He urged locals to be cautious of any request to deposit cash into a crypto ATM from someone not personally known, particularly if it is being pushed with a sense of urgency or a promise of unrealistic returns. If targeted, authorities have advised victims to immediately cut contact with the scammer and report the incident to local police, as well as the relevant digital currency exchange or financial institution. Australia cracks down on illicit crypto ATM use Tasmania’s efforts fall in line with a nationwide crackdown aimed at curbing the criminal misuse of crypto ATMs . National agencies such as the Australian Transaction Reports and Analysis Centre (AUSTRAC) and the Australian Federal Police have been leading efforts to dismantle illicit crypto ATM networks and strengthen oversight of the sector. Last year, AUSTRAC launched a dedicated task force to enforce compliance across the sector and also refused to renew the registration of at least one operator over compliance failures. The agency also partnered with law enforcement to distribute educational materials warning of common scam tactics. Data reviewed during the task force’s investigation revealed that older Australians were particularly at risk. Individuals over the age of 50 accounted for nearly 72% of total transaction value at crypto ATMs, with those aged 60 to 70 making up almost 30%. As a countermeasure, AUSTRAC introduced new operating conditions for ATM providers, capping cash deposits and withdrawals at 5,000 Australian dollars. Operators are also required to monitor transactions more closely and report any suspicious activity as part of their obligations under Australia’s anti-money laundering and counter-terrorism financing laws. The post Tasmania joins national crackdown on crypto ATMs after scams lead to millions in losses appeared first on Invezz
