Radhika Parashar
- Tasmania Police said top 15 crypto ATM users identified as scam victims
- At least $900,000 deposited by scam victims into crypto ATMs
- Police said, scammers are exploiting crypto ATMs to avoid bank suspicions
Crypto ATMs are poised to undergo an intensified crackdown as authorities from multiple parts of the world have reported of a persistent rise in scam incidents directly tied to their use. In a latest development, Australia’s island state of Tasmania has shared alarming instances of the use of crypto ATMs to facilitate financial scams.
Alarming details
On Friday, July 11, the Tasmania Police cyber investigations unit reported that at least 15 individuals have been defrauded by crypto scammers who manipulated them into investing in fake tokens via crypto ATMs. Collectively, the report said, scammers managed to fetch $900,000 through crypto ATMs from these 15 individuals.
“Victims are being manipulated, intimidated and pressured into investing in fake investment and romance scams,” Paul Turner, a detective sergeant in the Tasmania Police said in a statement.
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Turner shared that in many cases, crypto scammers asked their victims to wire funds using crypto ATMs after facing challenges in facilitating fund transfers through banks.
“If you are asked to deposit cash into a cryptocurrency ATM by someone you’ve never met in person, or the offer comes with a high-pressure deadline or urgent tone, then it is likely a scam,” Turner said in a warning.
Data by Tasmania Police claims that between 2021 and 2025, the number of crypto ATMs in the state have risen from one to twenty. In 2024, figures by Coin ATM Radar had shown that over a thousand crypto atms were active in Australia – making for 2.7 percent of the globally installed crypto ATMs.
Crackdown of crypto ATMs
Given the increasing exploit of these cash-to-crypto kiosks, however, Australia is conducting a nation-wide crackdown on crypto ATMs. Earlier in June, the Australian Transaction Reports and Analysis Centre (AUSTRAC) levied a deposit and withdrawal limit of AUD 5,000 on crypto ATM transactions.
Alongside Australia, even New Zealand is restricting access to crypto ATMs. This week, the New Zealand government imposed a ban on crypto ATMs to prevent financial criminals from flying under the radar and dodging law enforcement agencies using crypto ATMs. Earlier this year, Spokane also banned crypto ATMs citing a rise in fraud cases.
