The most active crypto ATM users were scam victims, Australia police warns

Tasmania Police contacted 15 of the top crypto ATM users in the area to discover that they all fell victim to scams. The investigation found no legitimate activity among the highest-volume users statewide.

Combined losses reached $2.5 million, including $900,000 deposited through cryptocurrency ATMs. Since 2021, the number of crypto ATMs in Tasmania has increased from one to 20 machines.

Police investigation reveals widespread crypto ATM scam activity

Tasmania Police contacted more than 15 Tasmanians suspected of being money mules and scam victims. The operation was part of a national action to combat criminal use of cryptocurrency ATMs. Tasmania Police Cyber Investigations discovered no legitimate activity among the top 15 users.

All the victims had been engaged in some scam activities on various platforms. All 15 of them lost a total of $2.5 million from scam activities, directly transferring approximately $900,000 via cryptocurrency ATMs in the scams.

Detective Sergeant Paul Turner said crypto ATM numbers rose from one to 20. Expansion was seen throughout Tasmania since 2021, providing more opportunities for scams. Victims are exposed to manipulation, intimidation, and coercion tactics by international criminal syndicates.

There are typical types of scams, including romance scams, investment scams, government impersonation scams, and tech support scams. Utility scams and job offer scams also target crypto ATM users. Scammers send victims to crypto ATMs after banks implemented friction in transactions.

High-value scams have severe and long-term impacts on victims in communities. Pensions leave victims dependent or compel them into asset disposal. Postponement of retirement may even be necessary while families take up support roles economically.

The report also claims that the reduced economic activity from such losses impacts the welfare of Tasmania . Red flags include solicitations by unfamiliar individuals and tight timing. Promised profits guaranteed usually signal investment scams for vulnerable groups.

Global crypto ATM expansion continues despite regulatory concerns

The global crypto ATM network expanded with over 1,000 new machines installed worldwide. Total numbers rose from 37,722 at the start of the year to 38,726 by June. The United States rebounded in Q2 after a Q1 decline, adding 500 machines.

US installations reached 30,447 total machines by mid-year through improved regulatory clarity. Increased institutional participation drove growth across multiple states and regions. Australia led relative growth, adding 491 new ATMs during the first half.

Growing retail take-up and benign fintech environment underpinned Australian growth rates. Canada installed 245 ATMs and Europe 149 new machines. These markets demonstrate sustained take-up even as regulatory pressure increases elsewhere.

New Zealand announced plans to ban crypto ATMs in AML and CFT reforms. Cash conversion to high-risk assets was identified by the government as a key concern. Facilitating illicit transactions with these machines prompted the choice of the regulatory reaction.

Australia introduced new operating rules and transaction limits for crypto operators. A $5,000 cap applies to cash deposits and withdrawals at machines. Enhanced customer due diligence and mandatory scam warnings became requirements recently.

Australians lost over $3 million to crypto ATM scams since January. 150 unique scam reports were filed with average losses exceeding $20,000. Nearly half of the victims were over 51 years old, with a female majority.

Law enforcement operations identified 90 scam victims and suspected money mules. One woman in her 70s lost over $430,000 through romance scams. Investment fraud and extortion emails commonly target crypto ATM users.

Scammers exploit crypto ATMs after bank transaction friction

The victims are directed to crypto ATMs by the scammers after banks create tension when customers try to deposit suspicious funds. The scammers then direct victims to cryptocurrency machines.

Detective Sergeant Turner cautions people to heed bank warning messages. Family and friends, and the police too, can be stabilizing resources when victims are being misled. Rushed timescales and urgent language usually indicate customer scams.

Cash deposit requests from strangers are usually scams. Unrealistically high return assurances and profit guarantees are red flags. Investment scams offer unrealistic profit, and romance scams target emotional connections.

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