The Australian Federal Police (AFP) has issued a warning about cryptocurrency ATM scams. This alert comes as several countries raise concerns about this growing form of fraud.
Data shows that the number of Bitcoin ATMs is rising again globally. This trend has sparked concerns that scams involving crypto ATMs may continue to increase.
Scam Losses from Bitcoin ATMs in Australia Remain Underreported
In Australia, it’s common to see a crypto ATM right next to a claw machine filled with Pokémon toys. This reflects how deeply crypto transactions are becoming integrated into everyday life in the country.
According to data from CoinATMRadar, the number of crypto ATMs in Australia has skyrocketed. It grew from just 40 machines in 2022 to over 1,800 by 2025.
This boom has made crypto transactions more convenient. However, it has also created new opportunities for scammers.
The AFP and the Australian Transaction Reports and Analysis Centre (AUSTRAC) report that scams involving crypto ATMs are on the rise. These scams have already caused millions of dollars in losses and mainly target people over 50.
In its latest statement, the AFP said that between January 1, 2024, and January 1, 2025, ReportCyber—Australia’s online cybercrime reporting platform managed by the Australian Cyber Security Centre (ACSC)—received 150 unique reports of scams involving crypto ATMs. Estimated losses totaled AUD 3,107,600.
“This equates to one report every two and a half days, each with an average loss of more than $20,000,” the AFP noted.
Data from AUSTRAC shows that around AUD 275 million is transacted annually through crypto ATMs in Australia. A significant portion of this is linked to fraud.
However, actual losses could be much higher. Many victims don’t realize they’ve been scammed, don’t know how to report it, or feel too ashamed to admit it. People over 50 account for more than 70% of transaction volume, making them prime targets.
How Do Crypto ATM Scams Work?
Scammers use various tactics to steal victims’ money. These schemes often exploit people’s lack of awareness and understanding of how crypto transactions work.
According to the AFP, common red flags include requests to deposit money into a crypto ATM, urgent pressure to act, promises of high returns with no risk, or payment demands in cryptocurrency from fake government agencies, banks, or legitimate companies.
Typical scam types include romance scams (posing as online lovers), investment scams (offering fake high returns), impersonation scams (posing as officials), fake tech support, and job scams.
Australia isn’t alone in facing this issue. In the US, the Michigan Attorney General’s Consumer Protection Division has warned about Bitcoin ATM scams. These scams also target older adults using similar tactics.
Last year, Canada also warned that Bitcoin ATMs were money laundering tools. The UK prosecuted a man for operating an illegal ATM last year.
Bitcoin ATMs are vulnerable to abuse because they lack regulation and oversight. Bitcoin transactions can’t be reversed or refunded, and many ATMs don’t require identity verification, making tracking scammers very difficult.
The growth of Bitcoin ATMs, combined with Bitcoin’s rising value, is posing new challenges for law enforcement. Authorities must now work harder to ensure financial safety for crypto users.
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