Tasmanians in Australia Send Millions to Scammers via Crypto ATMs

People in Tasmania, Australia, have lost at least $2.5 million in recent years to pig-butchering scams and investment scams through cryptocurrency ATMs, also known as CATMs.

CATMs appear similar to regular cash ATMs, but allow people to buy and sell cryptocurrencies such as Bitcoin. In 2015, there was only one CATM in Tasmania. By this year, the number has increased to 21.

The increase in the number of CATMs provides an opportunity for scammers to exploit the situation. Once the scammed money is in the CATMs, it is difficult to recover the loss.

In April, Tasmanian police visited cryptocurrency scam victims. The Cyber Investigations Unit found that these victims were all manipulated by scammers to transfer money via cryptocurrency ATMs. The victims lost an average of $165,000, with one person lost more than $750,000.

Police found that all high-value depositors among the top 15 users of cryptocurrency ATMs in Tasmania had been scammed. Most were around 65 years old and were targeted by pig-butchering schemes or investment fraud.

The scammers allegedly contacted the victims through phone calls, emails, and social media platforms before moving the conversation to encrypted messaging apps .

One victim initially lost $750,000 to an investment scam. The scammers later claimed the funds had been recovered but demanded additional payment to release the money.

In an effort to curb fraudulent activity, Australian authorities are planning to cap single deposits to CATMs at $5,000. The New Zealand government has announced a ban on cryptocurrency ATMs in the coming months.

BrokersView reminds you

When investors are asked by strangers to send money via cryptocurrency ATMs, act with caution as it is likely to be a scam.

If you have encountered a similar scam, you can help other investors avoid being cheated by exposing it through BrokersView.