Australian Authorities Crack Down on Crypto ATM Scams

Australian authorities are cracking down on cryptocurrency ATM issues as the machines become increasingly linked to scams and money laundering. In June 2025, a joint operation by the Australian Federal Police (AFP), AUSTRAC, and state police forces identified around 90 people across the country, including victims, suspected offenders, and money mules.

Australia now has more than 1,600 active crypto ATMs (rising to over 1,800 in some estimates), processing around AUD 275 million in total transactions each year, according to regulatory data. Authorities warn that older Australians are the main target, with victims convinced to deposit large sums under instructions from scammers posing as partners, officials, or investment contacts.

Regulated Platforms

Crypto ATM scams show how vulnerable unregulated systems are. Victims deposit thousands of dollars without verification. These cases are a warning about using crypto through unmonitored channels.

Regulated platforms available to Australians are both local and offshore licensed and have features like SSL encryption, 2FA, transparent records, and responsible usage tools. These are secure and accountable environments, unlike anonymous cash-based transactions.

Licensed platforms are a world away from unmonitored ATMs. They have oversight, fair play mechanisms, and structured consumer protections. Resources like a list of the best crypto casinos in Australia show how this works in practice. Many also feature secure payment systems, fast withdrawals, and built-in safeguards to protect players’ funds. While Australia’s gambling laws are complex, the comparison shows why accountability and compliance are key to reducing risk.

Financial Impact

Crypto ATM scams are getting more expensive. Between January 2024 and January 2025, ReportCyber received 150 reports of ATM-related scams totalling over AUD 3.1 million in losses. The average loss per incident was over AUD 20,000.

Recent cases show the severity of individual losses. In June 2025, AUSTRAC reported that a 70-year-old woman lost AUD 430,000 after putting money into ATMs as instructed by scammers. In Tasmania, 15 people lost AUD 2.5 million, with one person losing over AUD 750,000. The average age of victims was 65.

AUSTRAC data shows people over 50 now make up nearly 75% of all crypto ATM transaction value in Australia, so this demographic is being targeted by fraudsters.

Regulatory Response Tightens Up

AUSTRAC has introduced stricter rules for crypto ATM operators due to fraud concerns. Mid-2025 regulations introduced an AUD 5,000 limit on cash deposits and withdrawals, scam warning signs, enhanced customer due diligence, and improved transaction monitoring.

AUSTRAC has refused or cancelled registrations for operators with “unacceptable risk” profiles. These enforcement actions are part of a broader regulatory push that includes more scrutiny of crypto exchanges and other digital asset service providers.

Industry Impact

Regulations are a mixed bag for different stakeholders. Consumers get more protection from scams but lose access to unregulated cash conversion options. Businesses face much higher compliance obligations with penalties or closure if they can’t meet AUSTRAC standards.

For the crypto industry as a whole, the Australian authorities are sending a clear message to move towards more transparency and regulation. This is in line with global AML standards and consumer protection frameworks being implemented across major crypto markets worldwide.

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