Tasmania Cracks Down on Crypto ATM Scams After $2.5 Million Loss

Highlights:

• Tasmanian police report crypto ATM users lost money due to scams involving fake investments and romance traps.
• Australia now has nearly 1900 crypto ATMs, which scammers use to pressure victims into urgent and repeated cash deposits.
• New rules and global crackdowns aim to reduce fraud as crypto ATM scams continue to target vulnerable and older users.

Tasmania, an island state of Australia, has joined the national effort to stop rising crypto-related scams involving cryptocurrency ATMs. According to police, the 15 highest users of such machines in the state lost AUD 2.5 million to scammers. Of this, about AUD 592,000 was deposited directly into crypto ATMs. Police investigations revealed that victims were directed to these machines after traditional banks raised red flags on earlier transactions.

Crypto ATM scams in Australia are rising sharply, with Tasmania losing AUD 2.5 million to fraud—AUD 592,000 through crypto ATMs alone. Scammers use high-pressure tactics, coercing victims into depositing cash via ATMs after traditional banks raise alarms. In response, AUSTRAC has… pic.twitter.com/XmXhQ3bFXP

— Fama Crypto (@Famacrypt) July 11, 2025

According to Detective Sergeant Paul Turner, scammers often tricked victims into believing they were making safe investments or sending money to romantic partners. Most of the victims were old people who did not understand the cryptocurrency system. Scammers utilized fear, urgency, and false promises to urge them to make deposits on a large scale via crypto ATMs. Turner cautioned that any suggestion to send money into a crypto ATM out of pressure or urgency is probably a scam.

He further stated that most of these individuals who fell victim to such scams suffered serious consequences. Several victims have been left to rely on the government after they lost their wealth. In most instances, scammers reached out to them over phone calls, emails, or social media, only to use encrypted applications to evade detection.

Crypto ATMs Use Surges as Scam Tactics Intensify Across Australia

Tasmania had only one crypto ATM in 2021. Today, there are more than 20 in locations such as supermarkets, milk bars, and bottle shops. This rapid growth has created more chances for scammers to reach victims. Australia currently ranks among the top three globally for the number of crypto ATMs. The total number of machines in the country has grown to nearly 1,900 from just 67 three years ago. According to Coin ATM Radar data, the biggest operators are Localcoin, Coinflip, and Bitcoin Depot. The high growth has raised worries among regulators due to the rise in related scams.

AUSTRAC announced new restrictions and transaction levels for crypto ATM operators on June 3. These reforms intend to minimize fraud and enhance control over these machines. The restrictions were imposed after a national task force reviewed ATM usage across the country. The regulator is working to place warning signs near existing crypto ATMs.

Crackdown on Crypto ATMs Scam Gathers Pace

Other governments in the world are also striving to eliminate the misuse of crypto ATMs. New Zealand has recently banned these machines and restricted overseas cash movement in order to prevent financial crimes. These reforms are part of the initiative to ensure scammers are not transferring money to other countries.

In the United States, the city of Spokane in Washington State prohibited any crypto ATMs. Authorities connected the machines to fraud against locals. The ATM Fraud Prevention Act, introduced by Illinois Senator Dick Durbin, proposed that companies that operate ATMs should warn customers and implement steps to prevent fraud.