Australia Slams Brakes on Crypto ATMs Following $3M Fraud Spree

Regulators drop the hammer on anonymous cash-to-crypto machines as scammers vanish with millions.

Another day, another reason for bureaucrats to distrust decentralized finance—but hey, at least the banks get to say ’we told you so.’

What’s behind this rise in scams?

AUSTRAC’s latest crackdown on crypto ATMs follows an investigation revealing alarming fraud trends.

Between January 2024 and January 2025, Australia’s ReportCyber recorded 150 crypto ATM scam cases, with reported losses exceeding $3.1 million.

Analysis from nine ATM providers found that users over 50 accounted for 72% of transactions. This makes them the most vulnerable demographic.

Authorities suspect many victims remain unaware of the scams or hesitate to report them due to confusion or embarrassment, according to AFP Commander Graeme Marshall.

“Scammers often use sophisticated tactics to elicit funds from victims. We WOULD encourage people to share their stories with family and friends to raise awareness and help prevent others from falling victim.”

Way ahead

Needless to say, Australia’s crypto ATM count has surged from 67 in August 2022 to 1,819 today, making it the third-largest global hub.

This rapid growth has caught the attention of AUSTRAC, the nation’s financial crime watchdog, which is tightening oversight.

AUSTRAC warns that crypto ATMs pose risks because they enable anonymous transactions that are difficult to trace.

This raises concerns about compliance and the need for stricter regulations to curb potential misuse.

As the sector expands, regulators are reinforcing compliance measures to balance innovation with security and accountability.

Former AUSTRAC CEO Nicole ROSE had put it best when she said, 

“Crypto ATMs are a growing concern in our fight against financial crime. Without proper regulation, they become a tool for laundering money and financing terrorism.”