Elderly Australians are being scammed out of millions at crypto ATMs, and AUSTRAC is shutting them down.
AUSTRAC, or the Australian Transaction Reports and Analysis Centre, said it has refused to renew the registration of crypto ATM operator Harro’s Empires and imposed new conditions on others, according to a statement released Monday.
To combat fraud, AUSTRAC has capped deposits and withdrawals at $5,000 per transaction and is requiring enhanced customer due diligence. Digital currency exchanges that accept cash have been urged to adopt similar safeguards.
“A large number of 60–70-year-old users are victims of scam activity, AUSTRAC CEO Brendan Thomas said in the statement. “It’s a huge concern.”
The announcement follows a March warning by AUSTRAC that placed the sector “on notice," after a crypto taskforce formed in late 2023 flagged serious gaps in compliance.
New data from nine crypto ATM providers show that people over 50 account for nearly 72% of total transaction value, with the 60–70 demographic alone representing 29%.
“AUSTRAC’s recent move, coupled with Singapore’s MAS’ licensing deadline, are particularly alarming given APAC's established position as a crypto hub," Altan Tutar, CEO and Co-Founder of MoreMarkets, told Decrypt. "The region has long attracted Web3 projects through balanced regulation that pushed innovation while maintaining oversight. This competitive advantage now appears at risk."
AUSTRAC’s latest action targets a sector that has seen unchecked growth, with the number of crypto ATMs increasing from 23 in 2019 to over 1,800 today, according to Coin ATM Radar data.
Officials estimate that roughly $275 million is transferred annually via these machines, with nearly all transactions involving cash-based crypto purchases, primarily Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
“Operators must respect the law of the land,” Sudhakar Lakshmanaraja, founder of the blockchain education platform Digital South Trust, told Decrypt. “Compliance not only protects citizens but also reduces exposure to high-risk activities.
The regulator is also working with law enforcement to place educational materials near machines, hoping to deter victims before funds are sent.
“However, I would warn anybody who is asked to use one of these machines to send funds to someone to stop and think twice, as once your money is gone, it is almost impossible for authorities to retrieve it,” Thomas warned.
Lakshmanaraja said AUSTRAC’s move was “a clear warning” to the industry, as regulators worldwide are accelerating efforts to curb money laundering, terrorism financing, and other illicit crypto activity.
Crypto fraud surged to $9.3 billion in 2024, with Americans over 60 identified as the most frequent victims and reporting $107 million in losses from ATM scams, according to the FBI’s 2024 annual crime report.
In response to the rising threat, lawmakers across the Pacific are deploying their own countermeasures.
In February, U.S. Senator Dick Durbin proposed capping crypto ATM transactions and requiring refunds for scam victims, while Arizona and Nebraska passed laws mandating fraud warnings and ID checks.
Edited by Sebastian Sinclair
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