At first glance, it might look like a regular cash machine tucked behind magazines or beside a bustling petrol station counter. But these blue kiosks—crypto ATMs—are fast becoming a familiar sight not just in Australia, but around the world. And while they promise the convenience of buying Bitcoin or Ethereum with cash, authorities warn they are also fueling a dramatic surge in scams and illicit financial activity. On March 9, 2026, the U.S. Department of the Treasury sounded the alarm, submitting a report to Congress under the GENIUS Act that put crypto ATMs squarely in the crosshairs of regulators and law enforcement.
According to the Treasury report, crypto ATMs have emerged as a key tool for scammers and illicit actors. The numbers are staggering: in 2024 alone, the FBI received over 10,900 complaints related to crypto ATM scams, with reported losses reaching approximately $246.7 million. The report explains how criminals pressure victims—often older individuals—into quickly depositing cash and sending cryptocurrency to wallets controlled by fraudsters. These scams frequently take the form of impersonation or investment schemes, with fraudsters coaching victims step-by-step, sometimes even while they stand at the ATM.
Australia, despite its relatively modest population, has found itself at the epicenter of this trend. As of March 10, 2026, the country boasts more than 2,000 crypto ATMs, making it third in the world for these machines—behind only the United States and Canada. Back in 2019, there were just 23 such machines across the nation. Now, they’re everywhere: petrol stations, newsagents, tobacco shops, and convenience stores. According to CHOICE, the machines are mostly operated by North American companies like CoinFlip, Localcoin, BitRocket, and Bitcoin Depot, who partner with local businesses to host the kiosks in exchange for rental income and a cut of transaction fees.
But the convenience comes at a steep cost. Fees for purchasing Bitcoin through a Localcoin ATM can climb as high as 18%—not to mention an additional $4 flat fee—compared to the roughly 1% charged by most online exchanges. And while these machines are marketed as a simple, accessible way to buy cryptocurrency, authorities say they’re being used for scams and fraud at an “impossible to ignore” rate, according to AUSTRAC, Australia’s financial intelligence agency. AUSTRAC estimates that around 150,000 transactions take place on crypto ATMs in Australia each year, with about 10% linked to suspicious activity, including organized crime and scams.
The demographic data is particularly troubling. Data from nine major crypto ATM providers shows that most users are over 50 years old, with those aged 60–70 accounting for nearly 29% of all transaction value. This stands in stark contrast to the typically younger crowd associated with cryptocurrency trading. AUSTRAC CEO Brendan Thomas summed up the problem: “Crypto ATMs provide a fast, irreversible way for victims to send money to scammers. They’re easy to locate, often operating 24/7, and designed for quick cash transactions with no human intervention, making them highly attractive to criminals.”
The human toll is real and deeply personal. In one case from regional Victoria, a woman named Betty—over 65 and still working—lost her entire retirement savings to a crypto ATM scam. According to CHOICE, Betty was lured by an online investment opportunity, then meticulously coached by a scammer to withdraw $5,000 a day from her superannuation, deposit the cash into a crypto ATM, and send the funds to the scammer’s wallet. Over weeks, she lost around $140,000. Claude Von Arx, a senior financial counsellor at the Consumer Action Law Centre, described the process: “This woman had never used crypto before the scam, she was taught how to use the machines and given step-by-step instructions. She would go to the petrol station and then stand on the phone and the scammer would walk her through the process, right there in the open, she was coached through it. One note at a time.”
Stories like Betty’s are becoming alarmingly common, prompting calls for tougher regulation—or even outright bans. Australian Federal Police detective superintendent Marie Andersson didn’t mince words when asked if banning crypto ATMs would make policing scams easier: “The simple answer is yes.” Some countries, like New Zealand, have already banned crypto ATMs, while Singapore has imposed restrictions that have rendered them commercially unviable. In response to mounting concerns, AUSTRAC imposed a $5,000 transaction limit on all crypto ATM operators in 2025. Still, experts like Von Arx argue it’s not enough: “It’s like whack-a-mole—everyone is working hard to try and tighten the banking process, scams are already on the next scenario. Crypto ATMs are an easy way to circumvent the banking system and controls.”
CoinFlip, one of the largest operators in Australia, insists it takes consumer protection seriously. When CHOICE tested CoinFlip’s customer support by posing as a potential scam victim, the staff member cautioned, “Just so you know everything on the blockchain is permanent and irreversible, which means if you send her funds and you realise she has stopped talking to you that money is gone. There is no way to get it back. Are you aware of that?” The staff member asked probing questions but never explicitly mentioned the word “scam.” CoinFlip later stated, “CoinFlip takes consumer protection seriously and holds itself to the highest standard of compliance and transparency. In this instance, CoinFlip’s agent went above and beyond to educate the caller, cautioning them about trusting the intended recipient of the funds, explaining that blockchain transactions cannot be reversed once completed, and encouraging careful consideration before proceeding.”
Other companies, like Localcoin, have added printed warnings to their machines and programmed chatbots to warn customers if their transaction appears suspicious. Yet, critics argue that these measures don’t go far enough. Catriona Lowe, deputy chair of the Australian Competition and Consumer Commission, says, “Mandatory scam warnings and increasing the capacity to monitor transactions should help reduce opportunities for criminals to misuse these ATMs.”
As both the U.S. and Australia grapple with the rise of crypto ATM-related crime, regulators are exploring new approaches. The U.S. Treasury’s latest report not only flags crypto ATMs, but also points to transaction mixers, decentralized finance protocols, and cross-chain bridges as potential channels for laundering stolen crypto. At the same time, the agency sees promise in emerging technologies—artificial intelligence, blockchain analytics, digital identity solutions, and APIs—that could help financial institutions strengthen anti-money-laundering and counter-terrorism financing controls. The Treasury emphasized a technology-neutral regulatory approach, allowing institutions to adopt the tools best suited to their risk profiles.
In Australia, the Department of Home Affairs is developing legislation that would empower AUSTRAC to prohibit “high-risk” products that “cause harm to the community”—with crypto ATMs firmly in the frame. The federal government plans to introduce this legislation in 2026, and the debate over the future of crypto ATMs is only heating up. As Von Arx asked pointedly, “What is the argument for crypto ATMs, what is their purpose? It’s hard to build a business case for them. What do they add to society?”
With regulators, law enforcement, and consumer advocates all sounding the alarm, the fate of crypto ATMs hangs in the balance. For now, the machines remain a symbol of both financial innovation and risk—a reminder that in the fast-moving world of digital assets, convenience can come at a very steep price.