The crypto ATM scam draining Australians' bank accounts
Tasmania has fewer than 30 cryptocurrency ATMs, yet residents lost over a million dollars in just three months this year after being convinced to deposit their savings into the controversial machines.
What are cryptocurrency ATMs?
Crypto ATMs are machines that allow you to sell cryptocurrencies in return for cash.
But most people use them in the opposite way: inserting cash in return for crypto that gets sent to a virtual wallet.
Ninety-nine per cent of transactions made using Australia's almost 2000 crypto ATMs were cash deposits in return for cryptocurrencies like Bitcoin and Ethereum.
That's according to the Australian Transaction Reports and Analysis Centre (AUSTRAC), the federal government's financial intelligence agency.
The machines have spread rapidly across the country, up from just 23 seven years ago, with Australia now home to more than any other Asia-Pacific nation.
They're often found in convenience stores and service stations, including in small regional towns with few other services.
How are they used for scams?
Almost $300 million is moved through Australia's crypto ATMs every year, but the biggest users of the machines are among the least likely to be serious crypto traders.
In 2025, AUSTRAC found most Aussies who use the machines were over 50 years old, with those aged between 60 and 70 particularly prolific.
This is despite only 8.2% of baby boomers owning cryptocurrency, according to a survey by online crypto exchange Independent Reserve.
AUSTRAC believes many of these older users are victims of scams and are being coached by people they've met online to use the machines to send away their savings.
The agency says the speed of these transfers and near-impossibility to reverse them have made crypto ATMs popular with cyber criminals.
It's not the only reason the machines have copped flack.
Virtual currency experts have pointed out their transactions fees can reach 15%, much higher than those charged by most online coin exchanges.
$1.5 million lost in three months
Tasmania Police recently revealed the state's residents had lost more than $1.5 million in just three months earlier this year after being convinced by scammers to send funds via crypto ATMs.
This is despite Australia's smallest state having only 28 of the machines.
Detective Sergeant Paul Turner said most victims had been convinced by people they had met online to hand over their savings.
"Victims are being manipulated, intimidated and pressured into sending money to scammers involved in fake investment opportunities and online romance scams," he explained.
Common scams involving crypto ATMs
- Romance - Scammers pose as a potential romantic partner online and build an emotional relationship with you before asking for cryptocurrency to be sent via a crypto ATM.
- Investment - Fraudsters promote fake money-making opportunities and promise high returns in exchange for money sent via a crypto ATM.
- Tech support - Scammers claim to be from a major tech company and pretend your device or account has been compromised. They'll instruct you to transfer funds into crypto as a security measure.
- Job opportunities - Fraudsters pose as recruiters and convince you to send crypto to unlock tasks, secure a job or receive commissions.
Source: Tasmania Police
The Tasmanian figures aren't a surprise to advocates at the Consumer Action Law Centre.
The group has long-argued crypto ATMs have no legitimate use in Australia and says they should be banned.
"The consumer harm associated with these machines far outweighs any legitimate consumer benefit," says policy officer Pavithra Jayasekera.
"They have become a clear vector for scams and are enabling criminals to steal life-changing amounts of money from Australians".
Since 2025, AUSTRAC has required crypto ATM operators to put limits on cash deposits and withdrawals.
The machines must also come with warnings alerting users to signs they might be being scammed.
Crypto ATM operators have argued they're following these rules and implementing extra measures to protect users from scams.
Signs you might be in a crypto ATM scam
Despite their increasing prominence, crypto ATMs remain a fringe financial tool in Australia.
Therefore, police and advocates say, you should be suspicious of anyone you don't know asking you to use one to send money, as they're likely trying to rip you off.
"No bank, government agency, police officer or legitimate business will ask someone to deposit cash into a crypto ATM to protect their money, pay a bill, recover funds, or assist an investigation," says Jayasekera.
"Any such request should be treated as a major red flag".
"If you're unsure about a transaction, please seek advice from trusted friends, family members or police before proceeding," says Detective Sergeant Turner from Tasmania Police.
"And always take the advice provided by your bank".
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