Source: Banking Ombudsman Scheme
25 March 2026
People should be highly suspicious of anyone telling them to withdraw cash and deposit it in cryptocurrency ATMs, says the Banking Ombudsman after investigating several scam cases in which people have lost large sums of money using such ATMs.
Crypto ATMs allow people to deposit cash and buy cryptocurrency, which is sent to a digital wallet. Transactions usually happen very quickly and cannot easily be stopped or reversed once completed.
Banking Ombudsman Nicola Sladden said this speed and lack of traceability made crypto ATMs particularly risky when used under pressure or at someone else’s direction.
“We are seeing cases where customers are told to withdraw cash and deposit it in a crypto ATM, often as part of a so-called job offer or investment opportunity.
“Legitimate organisations, such as banks, or potential employers will never ask anyone to make payments in this way.”
In one recent case investigated by the scheme, a customer responded to what appeared to be a genuine online job advertisement. Following instructions, she withdrew $31,500 from her bank account, telling the bank it was to buy a car, but then deposited the cash in a crypto ATM. The funds were transferred to the scammer’s digital wallet and could not be recovered.
In another case , a customer was targeted over a six-month period after being drawn into what appeared to be a job offer. He withdrew and deposited nearly $65,000 in cash through crypto ATMs, thinking he was investing his money.
“In both cases, the victims believed they were following legitimate instructions,” Ms Sladden said. “That’s why it is so important that people are aware of the risks of using crypto ATMs, and also that they are skeptical about anyone urging them to use these machines.”
Consumer advocates and authorities around the world have expressed concern about the risks of using such machines, given the strong links to scammers and others involved in financial crime, and the Government in New Zealand looking at restricting or banning their use.
Ms Sladden said obvious red flags included requests to keep payments secret or give false information to a bank.
“People should independently verify who they are dealing with, and talk to someone they trust before making large or unusual payments.
“It’s important to stop and ask questions before taking any steps that might result in the loss of money.”
Related links:
Consumer advocate concern – https://consumeraction.org.au/opinion-ban-crypto-atms-end-robbery-in-plain-sight/
