Australia’s financial watchdog AUSTRAC has uncovered a shocking truth: among the 90 most active users of cryptocurrency ATMs, the majority are not tech-savvy investors—but scam victims and “money mules.”

Instead of acting as a gateway to the digital financial world, these machines are now being exploited for emotional manipulation and laundering dirty money. A nationwide investigation in cooperation with the police revealed that a huge portion of high-value transactions at crypto ATMs is linked to romance and investment scams.

Fraudsters Exploit Trust – Victims Lose Hundreds of Thousands of Dollars

One of the most devastating cases involves a 70-year-old woman who lost over $430,000 after being deceived by a combination of fake love and false promises of wealth. Another elderly woman sent $200,000 to a supposed “trading firm” that vanished without a trace. In both cases, the funds were unrecoverable—and so was the trust in digital finance.

AUSTRAC CEO: Most Transactions Involve Victims, Not Criminals

AUSTRAC’s head Brendan Thomas didn’t mince words: “We suspected that the high transaction volumes at these ATMs were suspicious. But the outcome exceeded our expectations—almost all of them were carried out by scam victims, not perpetrators.”

What was once seen as a cutting-edge tool for entering the digital economy has now become a trap, leaving people financially ruined and emotionally drained.

Australia Imposes Tighter Rules – The U.S. Follows Suit

To prevent further damage, Australia has introduced new regulations, including:

🔹 A $5,000 limit per ATM transaction

🔹 Mandatory identity verification

🔹 On-screen scam warnings

🔹 Stricter supervision of ATM operators and owners

Brendan Thomas urged the public to be extremely cautious: “If someone tells you to deposit cash into a crypto ATM and send it to a wallet you don’t control, chances are you’ll lose it all.”

Scam Losses in the U.S. Skyrocket – Nearly Tenfold Increase

A similar situation is unfolding across the U.S. According to the latest data, crypto ATM scams surged nearly tenfold between 2020 and 2023. In 2024 alone, FBI complaints rose by 99%, with related scam losses reaching $247 million.

People over 60 are particularly vulnerable, being three times more likely to fall victim than younger users. Scammers often guide victims step-by-step—where to go, how to scan a code, how to insert the cash. For many, it’s their first and last encounter with cryptocurrency.

Crypto Market Grows, But Security Lags Behind

Ironically, while scams are increasing, the crypto market continues to thrive. In the last 24 hours, the total crypto market cap has grown by over 2%, reaching $3.31 trillion.

🔹 Bitcoin is trading above $108,000

🔹 Ethereum hovers around $2,439

Digital assets are booming, but they’re also attracting more criminals. While technology moves forward, many people are left behind—often with empty wallets and shattered trust.

❗ What do you think? Should crypto ATMs face even stricter regulation, or is this just the result of irresponsible use?



#Cryptoscam , #BTC , #CryptoSecurity , #CryptoFraud , #bitcoin

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