Widow Loses $282,000 in Romance Scam Tied to Bitcoin ATMs

AUSTRAC stated in a press release on June 25 that one of those affected was a 77-year-old widow who lost AU$433,000 (about US$282,000) over a period of 18 months.

The woman had been speaking online with someone she believed was a Belgian man, according to a report by ABC. She only discovered the relationship was a scam when the police visited her home.

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According to AUSTRAC, the man had convinced her to invest in Bitcoin BTC $107,097.00 by showing her false proof that he had made thousands of dollars in just one week.

The man gave her instructions on how to withdraw cash from a regular ATM and deposit it through a Bitcoin ATM. Over time, the woman became familiar with the process and made repeated transfers.

At one point, she carried AU$20,000 in cash to make a deposit. She said:

The worst part was having to tell my daughter that I’d actually given my life savings, that had taken me 40 years to earn, and it took him 18 months to get.

Investigators focused on people who used cryptocurrency ATMs frequently, as this group was seen as more likely to be involved in scams or other suspicious activity.

Officers contacted 21 individuals who were either victims or possibly connected to the illegal use of these machines. While authorities expected to find mostly criminal behavior, they instead discovered that many people were being tricked.

Still, one person was charged with property laundering, and four others received official warnings for suspected drug-related crypto use or acting as couriers.

AUSTRAC has recently introduced new rules for crypto ATM operators in response to a rise in scam activity. What do these rules cover? Read the full story.