Tasmanian Police Identify Crypto ATM Scam Victims
Tasmanian police have reported that the top 15 users of cryptocurrency ATMs in the state fell victim to scams, resulting in combined losses of 2.5 million Australian dollars ($1.6 million). Approximately $592,000 of these funds were deposited through crypto ATMs. Authorities noted that scammers directed victims to these machines after banks flagged suspicious transactions.
Scammer Tactics Revealed
Detective Sergeant Paul Turner of Tasmanian police explained how scammers operate. They typically use fake investment opportunities and romance scams to manipulate victims. These schemes often involve pressure tactics to get targets to deposit cash into cryptocurrency ATMs. The consequences for victims can be devastating, sometimes forcing them to rely on pensions, sell assets, or postpone retirement.
Regulatory Measures Implemented
In response to increasing scams, AUSTRAC has established new rules and transaction limits for crypto ATM operators. This action follows AUSTRAC’s previous announcement prioritizing cryptocurrency regulation by 2025, demonstrating their commitment to protecting consumers from fraud.
Rise of Crypto ATMs in Tasmania
Tasmania has experienced rapid growth in crypto ATMs, expanding from one machine in 2021 to 24 today, according to Coin ATM Radar. This mirrors Australia’s status as the world’s third-largest market for Bitcoin and crypto ATMs, trailing only the US and Canada with more than 1,890 machines nationwide.
Global Efforts Against Crypto ATM Fraud
Other nations are taking similar steps to prevent crypto ATM misuse. New Zealand prohibited these machines and limited international cash transfers to combat money laundering. The US city of Spokane, Washington also banned crypto ATMs entirely, citing concerns about fraudulent activity.
