Australia’s financial crime watchdog today announced a crackdown on scams linked to cryptocurrency ATMs which are costing people millions of dollars.
AUSTRAC says regulation has lagged behind the explosion in the number of cryptocurrency ATMs, with criminals exploiting the use of the machines.
They enable users to buy or sell cryptocurrency with cash, and can be exploited by criminals who pressure victims into using these machines to send them cryptocurrency.
READ MORE: Aussie ex-cop slapped down over deportation claims
Over the past six years, the number of active crypto ATMs in Australia has increased more than 15-fold, from 23 to more than 1600 today.
But so has the level of scams linked to the technology.
In the 12 months up to this January, authorities investigated 150 reports of scams involving crypto ATMs, with an estimated loss of $3,107,600, but the figure is believed to be just the tip of the iceberg.
The three types of fraud involved were investment swindles, extortion emails romance scams.
The majority of victims were women.
AUSTRAC projects about $275 million is being moved through crypto ATMs every year and intelligence suggests many transactions are scam-related.
Australian Federal Police Commander Graeme Marshall says most of the people using the machines are aged over 50.
“Unfortunately, the reality is that once crypto is sent to a scammer, it’s difficult to trace and almost impossible to get back,” he said.
Crypto ATMs will now be subject to industry-wide controls, but users are being urged to be wary of warning signs for potential scammers.
“These can include being asked to deposit cash into a crypto ATM for any reason, offers or requests with an extreme sense of urgency, or crypto investments promising ‘guaranteed’ high returns with no risk,” Marshall said.
“If something sounds too good to be true, it probably is.”
DOWNLOAD THE 9NEWS APP: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the Apple App Store and Google Play.
