Australia is cracking down on cryptocurrency scams targeting seniors. The country’s financial regulator, AUSTRAC, has imposed new rules on crypto ATM operators to prevent fraud.
One key move is a AUD $5,000 limit on cash deposits and withdrawals from these machines. Users over 50 make up 72% of all transactions, with 29% coming from those between 60 and 70 years old.
AUSTRAC’s CEO, Brendan Thomas, is worried. He says seniors are being targeted by scammers who use social engineering tactics to trick them into buying cryptocurrencies. These scams often involve transferring cash to the scammers themselves.
To combat this, AUSTRAC is making operators display clear warnings about scams and step up their “know your customer” checks. They must also monitor suspicious transactions more closely.
Australia has seen a huge rise in crypto ATMs, with around 1,600 now in operation. Most transactions involve buying bitcoin, but other currencies like Tether and Ethereum are also popular.
The regulator has taken other steps, too, such as refusing to renew the registration of one company, Harro’s Empires, due to concerns its machines could be used for illicit activities. All crypto ATM operators are being told to register and put in place robust anti-money laundering controls.
These moves are part of a broader effort to ensure that new financial technologies don’t lead to greater risks for consumers or regulatory gaps. While crypto has offered new economic opportunities, the case in Australia highlights the need for specific regulations to protect vulnerable groups.
Sources:
– AUSTRAC: Scams, fraud and other illicit activity: AUSTRAC puts crypto ATM operators on notice