Are Tasmania’s Top Crypto ATM Users All Scam Victims? Police Reveal Shocking Losses

Tasmanian police have uncovered a disturbing trend in the state’s crypto ATM usage. The top 15 users of these machines were all scam victims, losing a combined $2.5 million to sophisticated fraud schemes.

Police say scammers pressured victims to use crypto ATMs after banks flagged suspicious transactions, making it harder for authorities to intervene in time. Scammers manipulated many victims into believing they were making legitimate investments or helping loved ones.

How did scammers direct victims to crypto ATMs in Tasmania?

Detective Sergeant Paul Turner explained that scammers often posed as investment advisors, romantic partners, or government officials. When banks blocked transfers, the fraudsters urged victims to withdraw cash and deposit it into crypto ATMs, bypassing traditional safeguards.

The scams ranged from fake investment opportunities and job offers to romance and government impersonation schemes. The fraudsters manipulated, intimidated, and pressured the victims into making urgent decisions, sometimes causing them to lose their life savings or force them to sell assets.

Did you know?
Australia is now the third-largest country for Bitcoin and crypto ATMs, with more than 1,890 machines nationwide-up from just 67 in 2022.

Could new regulations finally curb crypto ATM fraud in Australia?

The crackdown comes as AUSTRAC, Australia’s financial intelligence agency, introduces new rules and transaction limits for crypto ATM operators. These measures aim to stem the rise in scams and protect vulnerable users.

Since 2021, Tasmania’s number of crypto ATMs has soared from just one to over 20. Police and regulators are urging the public to be wary of any request to deposit cash into a crypto ATM, especially from someone they have never met in person or when pressured to act quickly.

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Tasmania’s crypto ATM surge fuels scam concerns

Australia is now the third-largest hub for crypto ATMs globally, trailing only the US and Canada. The rapid growth in Tasmania has made it a target for scammers, with average losses per victim reaching $165,000. Police warn that these high-value scams can have lifelong impacts, including forcing victims to rely on pensions or delay retirement.

Victims pressured by scammers after banks flagged transactions

Anti-fraud measures blocked many victims who initially attempted to transfer money through their banks. Scammers then directed them to crypto ATMs, where transactions are harder to trace and reverse. Police urge anyone asked to use a crypto ATM under pressure to stop and seek advice immediately.

Authorities are calling for increased vigilance, education, and reporting to combat the growing threat. With new regulations in place and ongoing investigations, Tasmania hopes to turn the tide against crypto ATM scams and protect its residents from further harm.