“That’s a Nice Deposit. Are You Being Scammed?”: Inside Australia’s Radical New Crypto Policing

In Australia, police have started calling crypto ATM users. Is this care for citizens’ safety or a step toward digital surveillance?

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Imagine inserting cash into a crypto ATM, transferring Bitcoin to a specified address. Suddenly, your phone rings. On the line is someone introducing themselves as a police officer, politely but firmly asking, “Are you sure you’re not being scammed?” In Australia, this is not fiction but a new reality.

Crypto ATMs under the watch of Australian police

Australian police have adopted an unprecedented practice: contacting cryptocurrency ATM users directly if their activity appears suspicious. These calls happen in real time, often just as someone is about to complete a transaction. The goal is to determine whether the user might be acting under the influence of scammers and whether they understand where their money is going.

According to official information from Victoria Police, AUSTRAC, and the Australian Centre to Counter Child Exploitation and Cybercrime, more than 90 cases of suspicious activity by crypto ATM users were recorded. Nearly all turned out to be scam victims, not criminals. This confirmed growing concerns: crypto ATMs are increasingly being used as tools in fraudulent schemes. AUSTRAC’s press release emphasized that the operation not only helped stop dozens of fraudulent transfers but also identified both victims and potential accomplices. Authorities noted that crypto ATMs are frequently used in romance scams, fake bank calls, and other social engineering tricks, with vulnerable populations including elderly individuals and migrants unfamiliar with the digital environment. 

Transaction data is shared with police through partnerships with ATM operators. Authorities claim that everything is done legally, although the exact data-sharing mechanisms remain undisclosed. Police insist these calls are not surveillance but a preventive measure. 

As Police Commander Graham Marshall explained:

We want to deliver a simple message: if anyone , whether a private individual, a company, or a government agency , asks you to send money using cryptocurrency, you shouldn’t do it.

He added that elderly people, newcomers to crypto, and migrants are especially at risk because they are more likely to trust phone calls and hope to recover lost funds after the fact.

You might be interested in reading an article on this topic Crypto Sydney: A Guide to Blockchain Life in the City of Sun

How This Intervention Works

This new policing method is built on cooperation with crypto ATM operators. These companies provide alerts when unusual user behavior is detected: for example, sending large amounts, making multiple attempts in a short timeframe, or using the machine at odd hours. All of these factors suggest that the user may be acting under pressure or instruction from scammers. The calls are targeted and made only when certain behavioral triggers are observed.

This strategy became possible not only thanks to technical integration but also because crypto ATMs have become the final stop in many scam operations. Unlike complex dark web transactions, here the user hands over money directly to a wallet address provided by the scammer. This is the moment (if police are lucky) when they can step in.

Crypto ATM operators have generally supported the initiative, saying it could prevent many people from losing their savings. Still, concerns remain: How is “suspicious” behavior defined? Who processes this data? Are there boundaries the police cannot cross? Without clear answers, even well-intentioned actions might create distrust. Previously, efforts were limited to on-screen warnings, but now authorities can intervene before money leaves the wallet.

Police presence near crypto ATMs raises questions about digital freedom - The Coinomist

If we move from theory to practice, we can see how the ATM industry is reacting. Many operators publicly welcomed the measure, saying it strengthens trust in the system. However, more cautious voices warn that if such practices become standard, users may begin to fear using crypto ATMs altogether. This is no longer just about fighting scammers; it's about the future credibility of the crypto infrastructure.

The Big Debate: Where Does Protection End and Surveillance Begin? 

Police involvement in financial processes has always sparked debate. We now find ourselves in a world where the phrase “safety first” is frequently used to justify new monitoring tools. Even liberal governments are leveraging digital transformation to tighten control. Under the banner of citizen protection, increasingly invasive measures are being introduced into private life.

Some see this as a necessary safeguard, while others view it as a troubling development. It raises an age-old but still urgent question: where does protection end and surveillance begin?

The Argument for Protection 

Many people would agree that a timely call from the police could save someone from losing money, especially an elderly person unfamiliar with cryptocurrency. This view sees the state as a protective figure, offering guidance and stepping in when necessary.

The Argument for Freedom 

But there are also users who turn to crypto precisely because they do not want anyone supervising their financial decisions. For them, external control represents a breach of core values such as autonomy, privacy, and decentralization.

The Uncomfortable Price of Freedom

The conversation isn’t only about crypto ATMs; it’s about the broader principles that will shape our digital future: will it be free but risky, or safe but tightly controlled?

The crypto-anarchist movement has long warned that once governments gain lasting influence over crypto infrastructure, they will use it not only against criminals but also to undermine individual freedom. These advocates are not necessarily anti-government. They argue for the right to control personal data, manage funds without intermediaries, and avoid mass surveillance. In an over-regulated state, even legal nonconformity can be treated as suspicious. And when that happens, cryptocurrencies risk becoming just another tool of control.

Ultimately, this brings us to the uncomfortable concept of personal responsibility. When individuals have direct control over their funds, they gain freedom. But that freedom is inseparable from risk. What separates a mature user from a vulnerable one is not the absence of threats, but the willingness to accept that responsibility – to check, question, and verify decisions independently.

Also read on this topic: Crypto-Anarchism: From Manifesto to Lifestyle 

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