Australian authorities have contacted 90 people after a nationwide operation targeting the most prolific users of cryptocurrency ATMs uncovered widespread signs of scams and fraud.
AUSTRAC said its Cryptocurrency Taskforce analysed the highest-value crypto ATM users in each state and referred dozens of suspected cases to federal, state and territory police. Officers subsequently identified most of the 90 as scam victims or money mules coerced into funnelling illicit funds through the machines. Further investigations are continuing into other users.
AUSTRAC chief executive Brendan Thomas said analysts found many of the biggest transactions in each state were linked to illegal activity.
“We suspected that a large volume of crypto ATM transactions were probably illicit, but disturbingly our law enforcement partners found that almost all of the transactions we referred involved victims rather than criminals,” Mr Thomas said.
“We came across a woman in her 70s who had deposited more than $430,000 into crypto ATMs after falling victim to romance and investment scams. Tragically, she has no way of recovering that life changing amount of money.
“Sadly she’s not the only one. The taskforce identified another women in her 70s who was conned after seeing what she thought was a legitimate advertisement about a trading firm offering a sizeable return on investment. She lost over $200,000.
“It’s hard to hear these stories but now we have a better picture of the harms being perpetrated through crypto ATMs, we are better placed to take action, including working with the industry to harden the sector against criminal misuse.”
The operation was led by NSW Police with support from AUSTRAC and the Australia-New Zealand Crypto Practitioners Working Group. The AFP-led Joint Policing Cybercrime Coordination Centre is coordinating a national prevention and education campaign.
The crackdown follows AUSTRAC’s move a fortnight ago to impose minimum standards on crypto ATM providers, including a $5,000 limit on cash deposits and withdrawals, stronger customer due diligence, mandatory scam warnings and improved transaction monitoring.
“For anyone considering using a crypto ATM – if someone asks you to deposit cash into one of these machines, think twice. Sending money to a wallet you don’t control likely means you’ll lose it,” Mr Thomas said.
