Intervention Against Cryptocurrency ATM Exploitation
In a significant intervention against the exploitation of cryptocurrency ATMs, the Australian Federal Police (AFP) revealed that they have reached out to over 90 Australian citizens linked to criminal activities, including victims of sophisticated scams such as those associated with ‘pig butchering’ schemes. Among the individuals affected is a 77-year-old widow who unwittingly lost a staggering 433,000 Australian dollars (approximately $281,947) in an online romance scam, according to Australia’s financial intelligence body, AUSTRAC. The widow recounted to the ABC that she was oblivious to her online partner’s fraudulent intentions until law enforcement authorities came to her home.
Details of the Scam
The scam started when the elderly woman was persuaded by a man she met on a dating platform to invest in Bitcoin, backed by falsified documentation that suggested he had made significant returns on investments. During her ordeal, she was guided on how to operate the Bitcoin ATM, involving withdrawing cash from a regular ATM which she then fed into the crypto machine. Over 18 months, she depleted her entire life savings, at one point carrying around 20,000 Australian dollars (about $13,023) in cash. The victim disclosed that the transactions felt like tasks that consumed “half a day’s work,” and she eventually became proficient in using the Bitcoin ATM.
“The hardest part was informing my daughter that my entire life savings, which I earned over 40 years, had been taken from me in just 18 months,” she shared.
AUSTRAC CEO Brendan Thomas highlighted that the task force also identified another victim, a woman in her 70s, who was lured into a false trading scheme, leading to a loss exceeding $200,000.
AFPs Crackdown on Crypto ATMs
The crackdown by the AFP has involved scrutinizing numerous individuals suspected of engaging with crypto ATMs for illicit purposes. Out of 21 key users contacted, some were thought to be victims while others were allegedly participating in illegal activities linked to these machines. In total, one individual was charged with property laundering, and four others received formal warnings about potential drug-related transactions or acting as money mules.
Unfortunately, in some cases, individuals who acted as money mules were themselves victims of scams, either unaware of their involvement in crime or attempting to recover funds they previously lost. The AFP observed a concerning trend, noting that many of the transactions they were investigating involved victims rather than actual criminals. Law enforcement emphasized the need for public awareness surrounding the risks, especially highlighting advice from Commander Graeme Marshall, who urged caution against scams promising quick profits, especially from unknown parties.
Future of Cryptocurrency Regulation in Australia
This latest operation follows AUSTRAC’s recent implementation of new regulations for crypto ATM operators on June 3 aimed at combating fraud. With a growing focus on cryptocurrency as a priority for legislation by 2025, it is critical for individuals to remain vigilant about any solicitations involving cryptocurrency, especially those suggesting payment through these devices. Australia’s cybercrime reporting platform, ReportCyber, has already received 150 reports related to crypto ATMs from January 2024 to January 2025, with total losses surpassing 3.1 million Australian dollars (nearly $2 million).
