Australia is cracking down on financial scams that target international students, especially those involving cryptocurrency.
The government has announced new powers for banks and the financial intelligence agency AUSTRAC to help stop money-laundering and crypto-linked fraud.
Why were the new laws introduced?
Over the past few years, international students have become a growing target for scammers who use digital currency to move money illegally. In many cases, students are tricked into letting others use their bank accounts, sometimes without realising that it’s a serious crime known as “money-muling”.
AUSTRAC, Australia’s anti-money-laundering regulator, found that thousands of crypto-ATM transactions — worth an estimated $275 million each year — may be linked to scams. Many of the people making these transactions are believed to be victims who were misled or pressured into taking part.
To address this, the Australian government is giving banks and AUSTRAC stronger tools to identify and block suspicious activity.
What’s changing
Under the new powers:
- Banks can now verify visa status with the Department of Home Affairs if they suspect an account is being used for illegal transfers.
- AUSTRAC can ban or restrict risky financial services, such as crypto-ATMs or other products that are frequently used in scams.
- Financial institutions are encouraged to educate and protect vulnerable customers, including international students and temporary visa-holders.
These measures aim to make it harder for criminals to use student bank accounts for laundering money or transferring stolen funds.
Why international students are being targeted
Scammers often look for people who might not be familiar with Australia’s banking and legal systems.
Anton Moiseienko, a senior lecturer quoted by the Australian Associated Press (AAP), has said:
“If you're an international student, you're in a country for a limited period of time. Then if someone says: ‘I'll pay you to get your bank account and use it’, you might not appreciate the risks related to that and the liabilities you're exposing yourself to.”
How to protect yourself
Here are some simple ways to stay safe:
- Never share your bank details or allow anyone to use your account.
- Be cautious of crypto investment offers that sound too good to be true.
- Avoid using crypto-ATMs unless you fully understand how they work.
- Check official sources — like your university’s student support team or Scamwatch — before transferring money or investing.
- Report anything suspicious to your bank.
