Crypto ATMs Under Fire in Australia as Scams Target Older Users

An investigation by Australia’s financial crimes watchdog, AUSTRAC, has uncovered serious problems with how crypto ATMs (CATMs) are being used across the country. The probe found that many operators aren’t following the rules, leading to one operator being shut down and others facing strict new conditions.

The investigation revealed that older Australians are the main users of crypto ATMs, and they are at high risk of being scammed. According to AUSTRAC, people over the age of 50 make up almost 72% of the total money spent at these machines. Shockingly, Australians aged 60 to 70 alone account for 29% of all transactions by value.

AUSTRAC chief Brendan Thomas said the investigation found clear signs of fraud, scams, and other illegal activity linked to these machines. He added that the heavy use of CATMs by older Australians is “a huge concern,” with growing evidence that many in the 60–70 age group are being scammed.

In 2024, at least 150 Australians lost over $3 million to scams involving crypto ATMs, with nearly half of the victims aged over 51, according to the Australian Cyber Security Centre. Australia is now the fastest-growing market for crypto ATMs — jumping from just 23 in 2019 to more than 1,800 today.

This issue isn’t limited to Australia. In the United States, which has over 30,000 CATMs, the FBI received more than 10,000 scam complaints last year — a 99% increase from 2023. Losses totaled over US$246 million, with more than US$100 million coming from people aged over 60.

To stop criminals from abusing the system, AUSTRAC has introduced new rules for crypto ATM operators. These include a $5,000 limit on cash deposits and withdrawals, stronger checks on customers, mandatory scam warnings, and better monitoring of suspicious transactions.

One South Australian operator, Harro’s Empire, lost its registration completely due to ongoing risks that its machines could be used for criminal activities.

AUSTRAC is now working with law enforcement and the crypto industry to develop more safeguards. Brendan Thomas said there’s a clear need for stronger regulation to protect consumers.

A report by ABC News featured several real-world examples of how these scams work. One petrol station worker said he often sees elderly people getting instructions over the phone while using the crypto ATM. Another victim said he was tricked into laundering money through a CATM after applying for what he thought was a legitimate work-from-home job.

In one heartbreaking case, Australian police said an elderly man lost AUD$1.4 million to a romance scam that used a crypto ATM. That money, authorities say, was funneled through a global money-laundering network controlled by organised crime groups.

Richard Chin, assistant commissioner of the Australian Federal Police cyber command, warned that once money is turned into cryptocurrency and sent to the scammers' digital wallets, it is nearly impossible to recover.

Authorities are urging people — especially older Australians — to be cautious when using crypto ATMs and to seek help if they suspect a scam.