Key Insights:
- Tasmania has been under pressure from rising crypto ATM scams lately.
- The Tasmanian police recently discovered that all top 15 crypto ATM users have been victims of scams in the past.
- Australia is taking measures against the misuse of crypto ATMs, alongside other regions like New Zealand and Spokane in Washington DC.
Tasmania has been facing a rash of crypto-related scams as of late.
Recently, law enforcement found that the top 15 users of crypto ATMs in the Australian state have all been victims of fraud. These scams, which often involve romance or fake investment schemes, have cost Tasmanians a combined $2.5 million AUD.
Moreover, $592,000 of this amount has been funneled directly through crypto ATMs. Here’s how it all unfolds.
How the Scam Worked
According to reports from the Tasmanian Police Cyber Investigations Unit, the victims, were tricked through social engineering tactics.
The scammers typically made first contact via phone calls, emails or social media before shifting conversations to encrypted messaging apps like WhatsApp or Telegram.
Australians are losing millions of dollars annually to crypto ATM scams
Australia announces new rules to safeguard crypto users from scams@Mohammed11Saleh reports pic.twitter.com/gkFyMaiTsu
— WION (@WIONews) June 3, 2025
Once they had gained the victim’s trust, the fraudsters would introduce either a romantic narrative or an investment opportunity that promised high returns. To “secure” the investment or prove their love, victims were instructed to deposit cash into the ATMs. This is where the funds would be converted to crypto and sent to the scammer’s wallet.
By the time many victims realized they had been duped, the money was long gone.
Tasmania’s Crypto ATM Explosion
Back in 2021, Tasmania had just one crypto ATM. Fast forward to this year, and that number has ballooned to at least 24 according to data from Coin ATM Radar.
This rate of growth has created more points of vulnerability for scammers to exploit. Crypto ATMs work similarly to regular cash machines, but allow users to buy or sell crypto like Bitcoin and Ethereum.
Their ease of use, anonymity and lack of oversight make them especially appealing to fraudsters. In many cases, victims were pressured toward these ATMs after mainstream financial institutions like banks flagged the suspicious transactions.
Australia Cracks Down on Crypto ATM Abuse
The scam revelation in Tasmania comes amid a much larger national crackdown.
For example in June 2025, AUSTRAC, Australia’s financial intelligence agency, introduced new compliance rules and transaction limits for the ATM operators. These rules now cap crypto ATM deposits at $5,000 AUD per transaction, in an effort to discourage large scam transfers.
AUSTRAC had already listed crypto misuse as a priority concern for this year. This was before the reports and the events in Tasmania now show clearly why. Australia is currently the third-largest market for these ATMs globally, behind only the United States and Canada.
The country now boasts over 1,890 ATMs, up from just 67 in August of 2022.
Overall, Tasmania isn’t alone in tackling the darker side of crypto ATMs. For example, In New Zealand, officials recently announced a more aggressive ban on crypto ATMs, along with restrictions on international cash transfers.
In the same vein, the city of Spokane, Washington (USA) also passed a complete ban on the ATMs on June 16, ordering the removal of all existing machines and blocking the installation of new ones.
The post All Top 15 Users Have Been Victims As Crypto ATM Scams in Tasmania Cost Rack Up $2.5 Million In Thefts appeared first on Live Bitcoin News.