Stephen (not his real name), a man in his 50s, was scammed into helping criminals. 

He began receiving unexpected deposits in his bank account. At the request of his girlfriend, he withdrew these funds and used a crypto ATM to buy cryptocurrency, which was transferred to a digital wallet controlled by a third party.

The problem was, Stephen had never actually met this girlfriend. It turned out he was a victim of a romance scam and was being used by criminals as a money mule. The deposits in his bank account were proceeds of other scams. Over time, his smaller transactions added up to nearly $200,000 in illicit funds, which he unknowingly converted into digital currency for criminals.

Cases like these highlight the need for digital currency exchanges to understand the risks and common signs of suspicious activity involving cryptocurrency and crypto ATMs. 

This is also why AUSTRAC recently launched an taskforce to ensure crypto ATMs providers comply with anti-money laundering and counter-terrorism financing (AML/CTF) laws to help keep the community safe.

How can I prevent crimes like this

Digital currency exchanges play an important role in protecting our community from serious and organised crime. To do your part:

• report suspicious activity: if you suspect a person or transaction is linked to a crime, submit a suspicious matter report
• ensure compliance: use resources for digital currency businesses to verify that your business has the right AML/CTF checks 
• report scams: if you believe you have come across a scam, report it to ScamWatch and the police  

Further information

For more information, visit our What to know when using crypto ATMs page.