Older Australians, known for being targets of scams, are now facing a new threat in the form of cryptocurrency ATM fraud. Imagine seeing someone with grey hair queueing up at a mall or gas station next to a peculiar machine that looks like a mix between a Chubb safe and a monochrome ATM – that’s the setup where the alarm bells should start ringing.
Years ago, spotting a crypto ATM was like finding a needle in a haystack with only 23 in Australia. Fast forward to today, over 1800 of these machines dot the country – equivalent to the number owned by major banks like Commonwealth Bank and double that of NAB or ANZ. Australia ranks as the third-largest host of crypto ATMs globally after the US and Canada.
The scale of this issue is alarming as law enforcement agencies grapple with escalating losses due to scam activities facilitated through crypto ATMs. The Australian Federal Police and AUSTRAC have reported $3 million lost to scammers via these machines in just one year, but officials believe the actual figure is much higher. According to AFP, the disclosed amount is just “the tip of the iceberg,
” indicating an ominous trend reaching epidemic proportions.
In 2024 alone, ReportCyber received reports equivalent to one scam every 2½ days, each resulting in an average loss exceeding $20,000. However, experts suggest that many incidents go unreported due to victims’ lack of awareness on reporting procedures or shame from falling victim to fraud schemes.
Beyond digital literacy challenges faced by older individuals, their accumulated savings make them attractive targets for scammers who exploit their trust and susceptibility towards speculative investments like cryptocurrencies. Dimitrios Salampasis from Swinburne University points out how older people might fall prey by believing they are assisting loved ones or investing in fake opportunities through crypto ATMs.
AUSTRAC CEO Brendan Thomas emphasizes caution when using these machines: “
Once your money is gone it is almost impossible for authorities to retrieve it.
” He warns against sending funds via crypto ATMs as they can serve as conduits for various scams ranging from romance cons to investment frauds orchestrated by global criminal networks leveraging the anonymity of cryptocurrency transactions.
To combat such illicit activities, AUSTRAC has imposed restrictions on cash transactions at crypto ATMs and plans stringent measures including enhanced customer due diligence requirements and mandatory scam warnings for operators. Despite efforts to tighten regulations, older Australians remain vulnerable due to emotional susceptibility and limited technical knowledge which scammers exploit relentlessly.
As highlighted by Thomas, while cryptocurrencies offer convenience as investment vehicles, their high-risk nature demands cautious decision-making especially when prompted by unknown entities requesting fund transfers through crypto ATMs. With recovery avenues nearly non-existent once funds are transferred into digital wallets via these machines, vigilance becomes paramount – hence the adage “
depositor beware.”
The influx of crypto ATMs presents both opportunities for legitimate transactions and risks associated with fraudulent activities targeting unsuspecting victims – particularly older Australians who must exercise heightened caution amidst this evolving financial landscape where scams lurk behind every transaction button press.
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