Australia’s financial intelligence agency has spotlighted crypto ATMs as a growing vector for fraud and exploitation, identifying 90 people involved in suspicious activity, including scam victims and suspected offenders.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) said the findings emerged from a coordinated investigation across the country, focusing on users making high-value transactions via digital currency kiosks.

The probe, conducted with law enforcement support, revealed that crypto ATMs are being widely exploited by fraudsters targeting vulnerable individuals.

Rather than uncovering an organised criminal ring operating the machines directly, the majority of transactions appeared to involve scam victims—many of whom were unaware they had been defrauded.

One such case involved a woman in her seventies who was found to have deposited over A$430,000 into crypto ATMs after falling prey to romance and investment scams.

Over 1,800 crypto ATMs under tighter scrutiny

The crackdown follows a broader shift in how AUSTRAC and the Australian Securities and Investments Commission (ASIC) are tackling the misuse of cryptocurrencies for illicit purposes.

Earlier this month, AUSTRAC imposed new restrictions and reporting requirements on digital currency exchange providers offering ATM services. These measures were introduced after compliance issues came to light during routine inspections.

Australia now has more than 1,800 crypto ATMs, and regulators fear that without stricter oversight, the machines could further accelerate scam-related transactions.

Based on transaction volume and behaviour patterns, AUSTRAC was able to flag several high-risk users and activities that aligned with fraud typologies.

Authorities used real-time data, cross-border information exchange, and partnership with financial institutions to map suspicious ATM usage across different states.

The focus was on identifying people making regular or unusually large crypto purchases, especially when linked to behavioural red flags typical of scam victims.

While investigations are still ongoing, AUSTRAC’s push for greater visibility into exchange operations reflects the broader concern about the integrity of the crypto ecosystem in Australia.

AUSTRAC’s CEO Brendan Thomas stated that despite expecting illicit behaviour around crypto ATMs, it was “disturbing” to discover that the vast majority of flagged transactions involved victims rather than perpetrators.

The agency continues to work with law enforcement partners to intervene in ongoing scams, provide support to victims, and dismantle the channels fraudsters use to move funds.

Public awareness and policy responses grow

As scams grow more sophisticated, Australian regulators are prioritising public awareness campaigns, urging individuals to verify investment opportunities and avoid engaging in crypto transactions suggested by unknown parties online.

AUSTRAC has highlighted a sharp increase in romance, tech support, and investment scams leveraging digital currency as a payment mechanism.

The use of crypto ATMs in particular has presented challenges, as they enable direct and irreversible transfers with limited oversight.

While AUSTRAC does not intend to restrict access to the machines altogether, it has signalled that compliance will be closely monitored and that further controls may be introduced if fraudulent activity continues at scale.

The situation underscores a broader global challenge: balancing financial innovation with consumer protection.

As crypto adoption accelerates, Australia’s experience may serve as a warning to other jurisdictions on the need for early and proactive regulation.

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