Crypto ATMS are a clear vector for scams: Ban them now says Consumer Action
Crypto ATMs are a clear vector for scam activity focusing on older victims*, charging eye-boggling fees and causing massive harms – “the Albanese Government should do the right thing and ban them now” says Consumer Action Law Centre CEO, Stephanie Tonkin.
AUSTRAC reports Australia’s crypto ATMs handle 150,000 transactions moving close to $275 million a year with many of them suspected to be linked to scam activity. Additionally, they can charge astronomical transaction fees of between 15-17 percent plus a flat charge of $3-4.
“We have assisted victims of sophisticated crypto scams like these, they are heartbreaking stories of people groomed and trained to ‘invest’ their money when the stark reality is they are being robbed in broad daylight,” Ms Tonkin said.
“The evidence is disturbing, and I find it incredible that household names like AusPost, BP and IGA, host these crypto ATMs in-store, bringing an aura of instant credibility to what is a business being used for financial crime,” she said.
Australia has the third-highest number of crypto ATMs in the world (1782), and other countries have moved to ban them because of similar scam concerns.
New Zealand, the UK, India and China have already banned them, and the United States, which has the highest number of crypto ATMs in the world, is moving to tighten regulations.
“Australia should immediately follow suit. There is no legitimate use case for crypto ATMs…” Ms Tonkin said.
As banks have started bridging gaps in the electronic payment process, scammers are now changing their focus to other ways to move money – and crypto ATM’s are ripe for exploitation.
“We have the Scam Prevention Framework – the most comprehensive anti-scam laws in the world – in the works. Crypto ATMs must not be allowed to escape scrutiny, and the Government could act immediately to combat the harm they cause – this is low hanging fruit.”
ENDS
*According to AUSTRAC the main demographic in Australia using crypto ATMs is 60-70 year-olds which directly contrasts with the broader landscape of cryptocurrency ownership, according to the Swyftx annual crypto survey with only 6 per cent of Baby Boomers surveyed saying they would invest in crypto in the next 12 months, compared with 39 per cent of Gen Z and 44 per cent of Millennials.
Media contact: Mark Pearce mark@consumeraction.org.au Tel: 0413 299 567
