Australians are losing millions of dollars each year to scams linked to cryptocurrency ATMs, with $3 million lost in 12 months.
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00:00Crypto ATMs are popping up everywhere in places we all visit, from shops to petrol
00:08stations. Basically, they allow people to buy cryptocurrencies by linking those digital
00:18currencies to a digital wallet. So basically, the machines allow people to deposit cash
00:25into them, which is then transferred to an online account. Now, some machines also allow
00:32people to cash out crypto, but most of the machines that we've observed only allow for
00:38cash deposits. Now, the reason why regulators are worried about these machines is because
00:45of their rapid growth in numbers. So Australia is now the fastest growing market for crypto
00:53ATMs in the world. We have the third highest number of machines globally behind the United
01:00States and Canada. So here in Australia, in 2019, there were 23 machines. Now there are more
01:07than 1,800. Now, the reason why regulators are concerned about that is because as banks crack
01:14down on scams and money laundering, authorities say that criminals are increasingly using
01:21crypto ATMs as tools for their illicit activity. And the reason why they know this is because
01:30for the first time, Austrac has obtained data from nine registered crypto ATM operators. And
01:38it's taken a look at that and confirmed that some of the transactions are being used for these illicit
01:45purposes. Now, in response to that, they have announced transaction limits and tighter controls
01:51on reporting obligations plus scam warnings. Let's take a listen to Austrac CEO, Brendan Thomas.
01:59Brendan Thomas, CEO, AUSTRAC CEO, AUSTRAC CEO, Brendan Thomas.
02:00We're not only worried about people being victims of scams, we're worried about drug purchasing and other money laundering
02:06activity happening through cryptocurrency ATMs. We're working with them now and having a good
02:10look at the greater money laundering controls that we might be able to require of them to
02:15limit the risk, to make them more accountable for the services that they're providing and
02:20to make sure we can trace their activity in much more real time than we can now.
02:24So how much are people losing to these crypto ATM scams, Rihanna? And who are the most vulnerable?
02:31Well, data on scam losses in Australia can be pretty unreliable. And that's because most people
02:38don't actually report these types of crimes to authorities. But what we do know is that in just
02:4512 months, that's to the end of January this year, Australians reported losing about $3 million in scams
02:53involving crypto ATMs. Now, basically what that means is that people have been targeted online by scammers
03:02and then they've been talked into either laundering money for these scammers through these crypto ATMs
03:10or depositing their own cash into these ATMs as part of romance scams, extortion scams and investment scams.
03:19Let's take a listen to the AFP's Richard Chin who explains that older Australians are disproportionately
03:28affected by these scams.
03:30I am aware of many cases. I'm aware of a particular case where an elderly gentleman was involved in a romance
03:41scam type situation and unfortunately was convinced to par with $1.4 million.
03:53As regulation in Australia catches up with the growth of crypto ATMs, authorities are urging anyone
04:01who believes they may have been affected by one of these scams to contact them with any information they may have.
04:08Rhianna, thank you.
04:09Rhianna, thank you.