Australia Imposes Rules on Crypto ATMs to Stop Scamming
Australian officials are stepping up efforts to stop a new wave of cryptocurrency ATM scams that occurred throughout the country and lost more than $3 million in the past year. The agency of financial intelligence, AUSTRAC, in the country has introduced rules with the aim of limiting the criminal abuse of kiosks that allow users to buy or sell cryptocurrency for cash.
Between January 2024 and January 2025, Australia’s cybercrime reporting system received 150 different reports of scams linked to crypto ATMs with an average loss per incident of more than $20,000. Most of the victims were over 50 years old, and the majority were women.
New Regulations and Limits Enforced by AUSTRAC
To counter this worrisome trend, AUSTRAC has imposed a ceiling of AU$5,000 (about US$3,250) for deposits and withdrawals at crypto ATMs. Operators must also issue clear scam warnings, boost transaction monitoring, and check customers more thoroughly. This measure is presently only applicable for ATM providers; AUSTRAC encourages crypto exchanges to take cash-out/ cash-in measures as well.
AUSTRAC Chief Brendan Thomas said the new conditions would be under review and could be subject to change anytime. He said, “These measures seek to reduce harm and prevent criminals from taking advantage of the system.” The emphasis is on the establishment of minimum standards to protect people and businesses from fraud.
Older Australians at Higher Risk of Crypto ATM Fraud
According to a task force from Australia’s Transaction Reports and Analysis Centre, persons aged over 50 in Australia undertake over 70 percent of the value of crypto ATM transactions, and it is a demographic being targeted by scammers. Investment fraud, romance scams, and fake extortion emails are examples of common types of scams.
Officer Graeme Marshall of the Australian Federal Police was “very much concerned” over underreporting. Crimes like fraud and scams are sometimes not thought of as crimes, he noted. “People feel it’s either their fault or that nothing will be done about it. However, in many cases, the losses caused by the transfer of funds via crypto are real and irreversible.”
Crypto ATM Boom and Rising Scam Incidents
Australia is seeing a growing number of scams since there were just 23 crypto ATMs in 2019. This year, that number soared to over 1,600, and by 2025, experts expect it to reach 3,600. Criminals pressure victims to deposit cash into ATMs and convert it into crypto. The money then becomes impossible to trace or recover.
Awareness Campaigns to Fight Crypto Scams
In a bid to fight against cybercriminals, an awareness campaign has been launched by AUSTRAC and the AFP’s JPC3. There are educational materials placed on the ATM itself to educate the public about scams and reporting.
Some Red Flags Highlighted in the Campaign Include:
- Being asked to deposit cash into a crypto ATM
- High-pressure offers or time-sensitive investments
- Promises of “guaranteed” returns with no risk
- Crypto payment requests from someone claiming to be a government agency
- Tech support calls demanding crypto to “secure” your account
Experts have warned the general public to always be on their guard, especially if they are engaging with a new online romantic partner or a new offer that sounds too good to be true. “Hold on, if a stranger asks you to invest in crypto or send them money—don’t do it. ” “Before you do anything, speak with someone you trust,” advised Marshall.
What to Do if You’re a Victim
As soon as possible, victims should cease contact with the offender, not send any more money, and report it to the police and Scamwatch. Notifying your crypto exchange provider is also essential.
The Road Ahead for Crypto Regulation
The growing crypto ecosystem will pose challenges to Australian regulators. Regulators have stated that education and awareness are the best tools to protect oneself against fraud.
