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Australians lose over $120 million to crypto scams

Australians lose over $120 million to crypto scams

GrafaGrafa2024/08/28 08:25
By:Isaac Francis

In the past year, Australians have lost more than AUD$180 million (over $122 million) to crypto investment scams, with younger individuals increasingly falling victim.

According to a press release by the Australian Federal Police (AFP) on August 28, nearly half of all reported investment scam losses involved cryptocurrencies.

Victims under the age of 50 now account for 60% of the cases, indicating that this demographic is particularly targeted by fraudsters.

Richard Chin, AFP assistant commissioner, emphasised that “financial gain is what motivates most scammers,” but warned that stolen funds could also fuel criminal activities such as money laundering, drug trafficking, or human exploitation.

The AFP reported that Australians lost nearly AUD$382 million (around $260 million) to investment scams in the 2023-24 financial year, with cryptocurrency being a significant factor.

The AFP, along with state and territory police, is urging the public to be cautious, especially when approached with investment opportunities that seem overly lucrative.

A common scam tactic highlighted by the AFP is “pig butchering,” where scammers build long-term relationships with victims before persuading them to invest large sums of money.

Scammers are also using deepfake technology to impersonate trusted public figures, adding a layer of credibility to their fraudulent schemes.

Australia is bracing for a surge in crypto-related scams, as highlighted by recent actions taken by the Australian Securities Investments Commission (ASIC).

Since July 2023, ASIC has coordinated the takedown of over 7,300 phishing websites, including 5,530 fake investment platforms and 615 crypto investment scams.

Investment scams have become the most prevalent type of fraud affecting Australians, with total losses reaching $1.3 billion in 2023.

ASIC attributes the rise in phishing activity to the proliferation of fake news articles and deepfake videos, particularly on social media platforms.

These fraudulent materials often feature public figures endorsing bogus online investment platforms, making them more convincing to potential victims.

As crypto scams become more sophisticated, Australians are increasingly at risk, particularly those under 50 who may be less suspicious of digital investment opportunities.

Both AFP and ASIC are calling for heightened public awareness to combat the growing threat of crypto scams in Australia.

The situation highlights the need for stronger measures and public education to protect potential investors from falling prey to these schemes.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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