Gairika Mitra
Australia has seen a nearly 17% increase in crypto ATMs over the past two years, making it the third-largest market for these machines, which the Australian authorities believe to be a “money laundering vulnerability.”
Australia currently has around 1,162 machines, rising from 67 over the past year as per recent data from Coin ATM Radar. This indicates that around 1,000 ATMs were added in the April-May period when Australia had more than 1,000 active machines operating.
Blockchain analytics firm TRM revealed that crypto ATMs dominate the cash-to-crypto industry. It “has processed at least USD 160 million in illicit volumes since 2019. Last year, illicit volumes in the cash-to-crypto industry stood at 1.2% of total volume, double the 0.63% for the overall crypto ecosystem,” according to the report from TRM.
The report added that illicit actors would use cryptocurrencies to move the funds cross-border, resulting in crypto ATMs facing additional money laundering vulnerabilities, mostly due to using cash, or account open controls. In 2023, it was reported that 79% of the illicit volume from cash-to-crypto transactions, exceeding USD 30 million, was sent to addresses linked to scams and fraud.
Crypto ATMs have become increasingly prevalent in the southern hemisphere. Besides Australia, New Zealand went from zero kiosks to 157 kiosks over the past year, acquiring the ninth rank across the globe.
Last year, the Australian Federal Police (AFP) launched a multi-agency money laundering task force specifically to target criminals who have been laundering “tens of millions of dollars in Australia every day to bankroll lavish lifestyles and further crime.“
The AFP believes that billions of dollars are being laundered in Australia every year. The agency also shared previously that Australians have lost around $180 million to cryptocurrency in the past year.
The individuals most targeted were those under the age of 50. Australians have been falling prey to two most common scams: the pig butchering scam and deepfakes.
The pig butchering scam involves establishing relationships with victims for many weeks up to months and then luring them into investing in fake crypto schemes. The deepfakes involve creating images and videos mostly of celebrities to promote fake cryptocurrency schemes.
The AFP recently launched a campaign called “Share a Story, Stop a Scam” to keep Australians abreast of recognizing and avoiding scams, particularly investment opportunities that sound too good to be true.
As a safety measure, the AFP advised Australians to stop communicating with scammers in case they fall prey to any scams, remove any kind of authorizations from them, and not make any further transfers.
Read More
- Australians Lose $180 Million to Crypto Scams in a Year, Says Federal Police
- Former US Bank CEO Sentenced for $47M Crypto Scam
- Trader Loses Over 1M to Scam Token from Hacked French Footballer Account
Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
