Romance Scam Drains $281K from Elderly Widow—Crypto’s Shadowy Underworld Exposed

Another day, another crypto horror story—this time with a heartbreaking twist.

How a 'Prince Charming' emptied a widow's life savings

The scam unfolded like a bad rom-com: sweet talk, fake promises, and a whirlwind digital 'relationship.' Then came the ask—'invest in our future' via an obscure crypto platform. Poof—$281,000 gone faster than a Bitcoin miner's patience during a bear market.

Security experts are screaming into the void

Cold wallets? 2FA? The victim never stood a chance against emotional engineering. Scammers now exploit loneliness better than Wall Street exploits retail investors.

The bitter pill? These crimes are near-impossible to reverse—decentralization's dark tradeoff. But hey, at least the thieves paid gas fees.

Widow Scammed Out of $281K in Crypto ATM Scam

According to the official press release, the investigation targeted users with unusually high volumes of transactions, drawing from ATM data across all Australian states. Analysts found that many of the top users were not orchestrating criminal schemes, but rather had been manipulated into them.

In a particularly distressing case, a woman in her 70s lost over $281,000 after falling prey to romance and investment scams, and repeatedly deposited cash into crypto ATMs under false promises. Another victim, also a woman in her 70s, was conned out of more than $130,000 after engaging with what she believed was a legitimate investment platform.

AUSTRAC CEO Brendan Thomas said the findings were more alarming than expected. He added:

“It’s hard to hear these stories, but now we have a better picture of the harms being perpetrated through crypto ATMs, we are better placed to take action, including working with the industry to harden the sector against criminal misuse.”

In response, AUSTRAC recently introduced minimum operational standards for crypto ATM providers. This includes a $5,000 limit on cash transactions, mandatory scam alerts, and improved customer verification and transaction monitoring protocols. These regulatory changes aim to tackle the exploitation of the machines by fraudsters and reduce opportunities for laundering proceeds from criminal activity.

The operation was coordinated by NSW Police and supported by the Australia-New Zealand Crypto Practitioners Working Group (ANZCPWG). Meanwhile, the Australian Federal Police’s cybercrime coordination unit (JPC3) is also launching a national awareness campaign to educate the public about the risks of using crypto ATMs under coercion or misleading advice.

Older Australians Most Affected by Crypto Scams

Crypto scams in Australia have been increasing at a disturbing rate. More precisely, crypto ATMs, which are now more than 1,600 nationwide, are increasingly being misused by fraudsters who target vulnerable citizens.

Over $3 million was lost to cryptocurrency ATM scams in the country between January 2024 and January 2025. Experts are warning that the real figure could be far higher. According to a report cited by the Australian Federal Police (AFP), 150 scam cases were reported, mostly involving investment fraud, extortion, and romance scams, with victims losing over $20,000 on average. Nearly half of those affected were aged over 51.