Scams involving cryptocurrency ATMs
As the use of virtual assets like cryptocurrency becomes more common, opportunities for criminal abuse also increase.
AUSTRAC intelligence shows that cryptocurrency is increasingly being exploited for crimes including money laundering, scams and money mule activities. Cryptocurrency ATMs (crypto ATMS) are especially vulnerable as they provide a convenient method to rapidly convert cash to cryptocurrency.
Research show that Australians over 50 are more likely to be targeted by scams. This is particularly concerning as many users of crypto ATMs fall within this age group. Scammers are taking advantage of the convenience and speed of crypto ATMs to exploit older Australians and steal their money.
Considerations when using crypto ATMs
Be cautious when buying or selling cryptocurrency through any platform, including through crypto ATMs.
Only make transactions for yourself and use an address or account (for example, a digital wallet) that you own or control.
You should also be aware of the following information when considering using Crypto ATMs:
- Sharing your cryptocurrency address or account details could see your funds withdrawn in another country before you realise it.
- If someone asks you to buy cryptocurrency for a friend, you might be dealing in proceeds of crime. They are used to receive funds related to scam and other criminal proceeds.
- Cryptocurrency can be used to pay for drugs, other criminal activities and even child exploitation.
- Australian government agencies, courts, utilities, and agencies that issue fines will never ask you to pay through crypto ATMs.
- Cryptocurrency transactions are not reversible – if you buy cryptocurrency using an address or account you don’t control, you could lose your money.
- Consider whether using a crypto ATM is right for you. Ask yourself if the products and fees suit your needs.
- Romance scammers may ask you to send them money through crypto ATMs.
- Ask yourself why someone might want you to send them money through a crypto ATM, or to several different digital wallets
- Moving criminal proceeds for someone else, even unknowingly, could put you at risk of being involved in money laundering.
Secure your crypto wallet
You wouldn’t let someone else open and control a bank account in your name.
Similarly, if you don’t control your crypto wallet, you don’t control those assets. You could lose them.
If you want to invest in or use cryptocurrency, set up your own wallet and use a reputable provider.
More information and reporting scams
- For more information about cryptocurrency scams, visit ASIC’s Money Smart website.
- Find out what to do if you've been scammed on ASIC’s MoneySmart website.
- To report a suspected scam, visit Scamwatch.
- To report a cryptocurrency or online scam, visit ReportCyber.
- You cannot report scams to AUSTRAC.
The content on this website is general and is not legal advice. Before you make a decision or take a particular action based on the content on this website, you should check its accuracy, completeness, currency and relevance for your purposes. You may wish to seek independent professional advice.