Cryptocurrency ATMs in Australia are under scrutiny from regulators, and investigations have shown that they are not “the future of finance” but “signaling the rise of fraudsters.” In a nationwide investigation, the Australian Transaction Reports and Analysis Centre (AUSTRAC) identified 90 top users of cryptocurrency ATMs, and most of them are not financial sharks or tech experts.
The report found that these people were mostly victims of scams, money mules, and some unwittingly facilitating money laundering through flashing cryptocurrency ATMs. This coincides with states in the United States tightening regulations on cryptocurrency ATMs to curb the growing number of scams, as these machines are often used by crooks to easily convert cash into cryptocurrency.
Cryptocurrency ATMs Become Fraud Hotspots
An investigation by AUSTRAC, federal and state police revealed that the majority of large-value transactions at cryptocurrency ATMs across the country were linked to scams such as romance scams, virtual investments and other schemes based on false promises.
A woman in her 70s reportedly lost more than $430,000 after being scammed by a combination of fake love and fake profits. The money lost was irrecoverable.
Another case is of a woman of the same age who transferred $200,000 to a “trading company” that disappeared as quickly as her trust in the Internet. She was fooled by a fake advertisement for a company promising huge profits.
“We suspect the majority of transactions through cryptocurrency ATMs may be illegal, but most of the transactions we examine are from victims, not bad actors,” AUSTRAC director Brendan Thomas said bluntly.
The sad reality is that ATMs, once expected to be the gateway to the future of the cryptocurrency economy, are now being used as tools in sophisticated scams, leaving victims empty-handed and disoriented.
Cash-to-Cryptocurrency Conversion Scams on the Rise
Australia’s watchdog has stepped up its game, introducing stricter regulations. Measures include a $5,000 ATM transaction limit, mandatory fraud alerts, more rigorous identity checks, and increased monitoring. When using a cryptocurrency ATM, think twice if someone asks you to deposit cash on their behalf, Thomas said. Transferring money to a wallet you don’t control is almost guaranteed to result in losing money.
In the United States, many states are also implementing tough laws to control cryptocurrency kiosks. The report found that from 2020 to 2023, fraud involving cryptocurrency ATMs increased nearly 10-fold. The FBI recorded a 99% increase in complaints in 2024, with losses reaching $247 million.
Americans over 60 are three times more likely to fall victim to cryptocurrency ATM scams than younger people. The scam is sophisticated, with the scammers providing step-by-step instructions, from going to a gas station, scanning a QR code, and depositing cash. Most victims have never been exposed to cryptocurrency before, and after being scammed, they often lose faith in the market.
Still, the digital asset market continues to grow. The total cryptocurrency market capitalization has increased by more than 2% in the past 24 hours, reaching $3.31 trillion. Bitcoin is trading above $108,000, while Ethereum is hovering around $2,439 at the time of writing.
Source: https://tintucbitcoin.com/atm-tien-dien-tu-uc-lua-dao-nhieu-nguoi/
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