Crypto ATMs: How to Protect Yourself from a Growing Scam Risk

Australia’s cryptocurrency ATM network has exploded in recent years, and so have the scams exploiting them.

What’s happening in Australia right now

Older Australians, in particular, are being targeted by scammers who know exactly how to manipulate and pressure their victims. Victims of crypto ATM scams are often first contacted by phone, email, or social media with offers of investments, jobs, or urgent security alerts.

Scammers quickly move the conversation to encrypted apps like WhatsApp. They then use intimidation, urgency, or emotional manipulation to gain trust.

Victims are instructed to withdraw cash and deposit it into a crypto ATM while receiving step-by-step instructions over the phone. Once converted to cryptocurrency and sent to the scammer’s wallet, the money is almost impossible to recover. This often leaves victims with life-changing losses, from delayed retirements to the sale of assets.

The stats are shocking:

-Australians lost $3 million AUD to crypto ATM-related scams in the past year.

-In Tasmania alone, victims lost $2.5 million, with one scam victim losing $750,000 alone.

-AUSTRAC’s research shows 1 in 10 CATM transactions may be linked to scams or other crimes.

Here’s how the 'Stop. Check. Protect.' approach can help keep you safe.

STOP: Pause Before You Use a Crypto ATM

Scammers want you to act fast, especially when it involves large sums of money. They might call, email, or message you claiming to be from your bank, or a government agency. They might even pretend to be a romantic partner.

Signs you should stop immediately:

-Someone is on the phone telling you exactly what to do at the machine.

-You’ve been told your bank account or crypto exchange account is “compromised” and must transfer funds to “keep them safe.”

-You’re being rushed or threatened.

CHECK: Verify the Story Before Acting

Scammers often impersonate trusted organisations such as banks, crypto exchanges, or government agencies. They can sound very convincing. Before you hand over cash or crypto, check if the request is genuine.

Steps to check:

-Hang up and call the organisation back using official contact details (not the number given by the caller). Don’t just call the real number and hang up, wait to speak to someone.

-If it’s an investment opportunity, research it via official sources, not links sent to you.

-Ask a trusted friend or family member to review what’s happening.

Remember: No legitimate organisation will ask you to deposit money into a crypto ATM for “security” reasons.

PROTECT: Act Fast if Something Feels Wrong

Once cash is turned into cryptocurrency and sent, it’s almost impossible to recover. The faster you act, the better the chance you can limit the damage.

If you’ve been targeted:

-Contact your bank immediately if you’ve made any related withdrawals.

-Report the scam to Scamwatch.gov.au and, for cyber-related scams, to Cyber.gov.au.

-Make a police report – keep as many details as you can.

-Change passwords for any accounts involved in the scam.

-If you’ve given out personal details, contact IDCARE to help secure your identity.

-Seek emotional support from services like Lifeline or Beyond Blue. Many victims face long-term financial and mental health impacts.

The Bigger Picture

Australia now has over 1,500 crypto ATMs, making it the fastest-growing market globally, but this rapid growth brings rapid risk. Other countries have either banned or heavily regulated the use of these machines.

For scammers, these machines offer a way to move money quickly and irreversibly. This is often under the guise of urgent requests, fake investments, or fabricated debts.

Victims are pressured to deposit cash or transfer funds using QR codes, with little time to think or verify the legitimacy of the demand. Once the transaction is completed, recovery is extremely difficult, if not impossible. This is why intervention before the money is sent is critical.

Check in on friends and family, especially those who might be less familiar with cryptocurrency or financial technology. Talk openly about how these scams work, the red flags to watch for, and the importance of pausing before acting on high-pressure instructions.

What’s the best defence?

Remember: Stop. Check. Protect.

Because the moment you deposit cash into a scammer’s crypto wallet, it’s gone.