tl;dr
Elderly Australians are losing millions to scams at crypto ATMs, prompting AUSTRAC to shut down some operators and impose stricter regulations, including transaction caps of $5,000 and enhanced customer checks. People aged 50 and above account for nearly 72% of crypto ATM transaction value. The numb...
AUSTRAC is taking decisive action to protect elderly Australians from losing millions to scams at crypto ATMs by shutting down some operators and imposing stricter regulations. These measures include transaction limits capped at $5,000 and enhanced customer due diligence aimed at combating fraud targeting people aged 50 and above, who account for nearly 72% of the total crypto ATM transaction value.
The number of crypto ATMs in Australia has exploded from 23 in 2019 to over 1,800 today, with annual cash-based crypto purchases estimated at $275 million, mostly involving Bitcoin, Ethereum, and Tether. AUSTRAC has refused to renew the registration of certain operators, such as Harro’s Empires, and is urging digital currency exchanges handling cash to implement similar safeguards.
AUSTRAC CEO Brendan Thomas highlighted the growing concern over scam activity disproportionately affecting those in the 60–70 age group. The regulator is partnering with law enforcement to install educational warnings near ATMs to warn potential victims before transactions are made. However, Thomas cautioned that money sent through these machines is difficult to recover once lost.
This crackdown follows a sector-wide compliance review after a crypto taskforce identified major vulnerabilities in late 2023. Industry experts note that AUSTRAC’s recent moves, alongside international regulations such as Singapore’s MAS licensing deadline, signify a tightening regulatory environment that could impact APAC’s position as a crypto innovation hub.
Globally, crypto fraud surged to $9.3 billion in 2024, with older Americans being heavily targeted—reporting losses of $107 million from ATM scams alone. In the U.S., lawmakers like Senator Dick Durbin and states like Arizona and Nebraska have introduced laws imposing transaction caps, fraud warnings, ID checks, and refund requirements to better protect consumers.
As regulators worldwide ramp up efforts to curb illicit crypto activity, AUSTRAC’s actions send a clear message: compliance is not optional, and protecting vulnerable populations from financial harm remains a top priority.