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Tasmania Police say scammers are increasingly steering victims toward cryptocurrency ATMs to complete fraudulent payments after banks flag suspicious transfers, with a new national crackdown uncovering fresh losses linked to romance, investment and recovery scams across the state.
“In many cases, scammers directed victims to cryptocurrency ATMs after they encountered resistance or questioning from their financial institution when attempting to transfer funds.” — Detective Sergeant Paul Turner
The warning comes as Tasmania’s crypto ATM network has expanded rapidly. The state had only one cryptocurrency ATM in 2021, compared with 28 machines now operating across Tasmania.
Police said the latest three-month losses add to concerns raised by an earlier investigation into the use of cryptocurrency machines by scam victims.
Tasmania Police said scammers are exploiting several types of fraud to persuade people to make cryptocurrency payments.
Romance scams can involve criminals developing relationships with victims online before asking them to send money. Investment scams may instead promise financial returns, while recovery scams typically target people who have already lost money and are then approached by criminals claiming they can recover it.
In each case, a crypto ATM can become part of the payment process when victims are persuaded to convert cash into cryptocurrency and send it to an address controlled by criminals.
Turner said victims were frequently subjected to manipulation and pressure during the scams.
“Victims are being manipulated, intimidated and pressured into sending money to scammers involved in fake investment opportunities and online romance scams.” — Detective Sergeant Paul Turner
Police previously reported in July 2025 that Tasmania’s 15 biggest crypto ATM users had all been identified as scam victims. Those victims had collectively lost $2.5 million, with approximately $900,000 deposited through cryptocurrency machines.
The average victim was about 65 years old, while one person lost more than $750,000.
The figures illustrate the potentially significant financial consequences when scammers convince victims to bypass conventional payment safeguards and use cryptocurrency instead.
Police said one of the clearest warning signs is being instructed to put cash into a crypto ATM by someone who was met online or who made unexpected contact by telephone.
The warning is particularly relevant because scammers can create a sense of urgency, trust or fear before directing victims toward a cryptocurrency payment.
“If someone you’ve met online or a person who has contacted you unexpectedly asks you to deposit cash into a cryptocurrency ATM, it is highly likely you are being targeted by a scam.” — Detective Sergeant Paul Turner
Australian cyber-safety guidance similarly warns that investment and cryptocurrency scams can involve promises of quick returns and pressure to act quickly. People who have lost money to a scam are advised to contact their financial institution immediately and report the incident through ReportCyber.
Police also stressed that legitimate government agencies, law enforcement bodies and utility companies will not demand payment in cryptocurrency. Genuine investments, they said, should not guarantee profits.
The growing use of crypto ATMs has made it increasingly important for consumers to question unexpected instructions involving cryptocurrency payments.
A person who is contacted online or by phone and then instructed to use a crypto ATM should stop before making a payment, particularly if the request comes from someone they have never met in person.
Turner urged people to seek independent advice before proceeding with suspicious transactions.
“If you’re unsure about a transaction, please seek advice from trusted friends, family members or police before proceeding – and always take the advice provided by your bank,” he said.
Police said anyone who believes they have been targeted should immediately stop communicating with the scammer and avoid sending additional money. Victims should also report the incident through Australia’s cybercrime reporting channels.
The Australian Cyber Security Centre advises scam victims to report financial losses to their bank or financial institution as soon as possible and to complete a ReportCyber report.
As Tasmania’s cryptocurrency ATM network continues to expand from the single machine recorded in 2021 to 28 across the state, police are warning residents to treat unexpected requests for cryptocurrency payments as a potential scam, particularly when the request comes from someone known only through online or telephone contact.
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