Cryptocurrency ATM scams on the rise

In recent years, cryptocurrency has surged in popularity, promising new opportunities for investment and financial innovation.

However, with this rise comes an unfortunate increase in fraudulent activities, particularly involving cryptocurrency ATMs. In Australia, these scams have become an alarming issue.  

Understanding cryptocurrency ATMs

Cryptocurrency ATMs are machines that allow individuals to buy or sell digital currencies, such as Bitcoin, using cash or debit cards. These ATMs work like regular ATMs, but they handle cryptocurrencies instead of traditional money. 

While they provide a convenient way for users to access cryptocurrency, they also present new risks, as they can be targeted by scammers.  

The rise of cryptocurrency ATM scams

Recent reports indicate a significant increase in scams involving cryptocurrency ATMs across Australia. 

From 1 January 2024 to 1 January 2025, ReportCyber received 150 unique reports of scams involving crypto ATMs, with an estimated loss of $3,107,600.  

Scammers use different tricks to make people send money through cryptocurrency ATMs:

• Investment scams: Scammers promise high returns on cryptocurrency investments and convince victims to deposit funds into cryptocurrency ATMs. The victims are often lured by the prospect of quick and substantial profits, only to find that their money has vanished.  

• Romance scams: Scammers create fake romantic relationships online to gain the trust of their victims. Once trust is gained, scammers create a fake financial emergency and convince the victim to send money through a cryptocurrency ATM.  

• Threat and penalty scams: Scammers impersonating law enforcement or government officials who claim that the victim owes money for taxes, fines, or other legal obligations. The victim is then directed to withdraw cash and deposit it into a cryptocurrency ATM to resolve the supposed issue.  

• IT scams: Scammers pose as tech support representatives from reputable companies, claiming that the victim’s computer is infected with viruses or has other critical issues. They then instruct the victim to pay for unnecessary software or to “secure” their funds using a cryptocurrency ATM.  

To protect yourself from becoming a victim of cryptocurrency ATM scams:

• Educate yourself: Familiarise yourself with how cryptocurrency and cryptocurrency ATMs work. Understanding the basics can help you identify suspicious activities and avoid falling for scams.  

• Be sceptical: If someone contacts you out of the blue, especially claiming to be from a government agency or offering an investment opportunity, be wary. Verify their identity and consult with trusted family members or financial advisors before taking any action.  

• Do not share personal information: Never share your personal, financial, or banking information with anyone you do not know and trust. 

Remember:

• Stop - Does a call, email, or text seem off? The best thing to do is stop. Take a breath.
• Check - Ask someone you trust or contact the organisation the message claims to be from.
• Reject - If you’re unsure, hang up on the caller, delete the email, block the phone number.