Crypto ATM Rip-offs Dupe Aussies: Senior Citizens Bear the Impact

An investigation by Australia’s financial criminal activities guard dog, AUSTRAC, has exposed prevalent absence of compliance by crypto ATM (CATM) operators, resulting in one operator losing their registration and others being struck with operating conditions, such as deal limitations. The examination likewise found that older Australians are far and away the biggest users of CATMs, putting them at increased risk of falling victim to crypto scams and other criminal activities.

Australia is currently the world’s fastest-growing market for crypto ATMs, with the number of machines having exploded from 23 in 2019 to over 1,800 today. As part of AUSTRAC’s work to protect the financial system from criminal abuse, they’ve put a number of conditions on crypto ATM operators, including a $5,000 limit on cash deposits and withdrawals, enhanced customer due diligence commitments, mandatory fraud warnings, and requirements for more robust transaction monitoring.

These operating conditions specifically apply to CATMs. However, AUSTRAC expects regular crypto exchanges to also implement similar protections if they allow customers to purchase crypto using cash. The investigation revealed risks associated with CATMs, leading to the denial of registration renewal for a South Australian CATM operator named Harro’s Empire. Cases of exploitation and financial losses, particularly among senior citizens, emphasize the need for increased awareness and security measures in the crypto ATM industry.

AFP assistant commissioner for cyber command, Richard Chin, highlighted a case where an elderly man lost AUD$1.4 million to a love scam involving a crypto ATM. These fraudulent activities often involve complex international money laundering schemes, making recovery of assets challenging once converted to digital currencies.