Australians Lose $122m To Crypto Scams In 1 Year

Crypto Scams Surge in Australia: $122 Million Lost

Australians have lost over $122 million to crypto investment scams in the past 12 months, with those under 50 being the primary targets.

The alarming data, revealed in a press release by the Australian Federal Police (AFP) on 28th August, highlights a growing trend in fraudulent crypto schemes.

The AFP emphasised the urgent need for public awareness as scammers develop increasingly sophisticated methods to deceive investors.

“Aussies reported losing at least $180 million of cryptocurrency in investment scams within a year, with victims now more likely to be under the age of 50,” an AFP spokesperson said.

“We’re urging everyone, especially those under financial pressure, to be extra cautious about offers that seem too good to be true.”

Crypto Investment Scams and Their Impact

The AFP report details that nearly half of the $260 million lost to investment scams in the 2023/2024 financial year involved cryptocurrency.

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These scams are not just financially devastating; they also fund other illicit activities such as money laundering, drug trafficking, and human exploitation.

“Financial gain is the primary motive for these bad actors,” the AFP spokesperson noted, “but the proceeds are often used to bankroll more serious crimes.”

Common Crypto Scams in Australia

Two types of scams have become particularly prevalent in Australia: Pig Butchering scams and Deepfake scams.

Pig Butchering Scams: In this scam, perpetrators build a long-term relationship with their victims, gaining their trust before convincing them to invest large sums in fraudulent crypto schemes.

These scams are named after the method of “fattening” up the victim before “butchering” them.

Deepfake Scams: These scams involve the use of AI-generated videos or images to impersonate well-known personalities, convincing victims that the investment opportunities are legitimate.

This new technology has made it increasingly difficult for potential investors to distinguish between real and fake opportunities.

Prevention and Awareness Efforts

The AFP has joined forces with state and territory police to combat these scams as part of Scams Awareness Week, which runs from 26th–30th August.

The campaign, themed “Share a Story, Stop a Scam,” encourages Australians to speak out about their experiences with scams to help prevent others from falling victim.

“Public awareness is our most powerful tool against these scams,” said the AFP spokesperson. “By sharing stories, we can stop scams from claiming more victims.”

Australian Securities and Investment Commission’s Role

Australia’s Securities and Investment Commission (ASIC) has been actively involved in tackling crypto-related fraud.

Since July 2023, ASIC has coordinated the takedown of 7,300 phishing websites, 5,530 fake investment platforms, 1,065 phishing scam links, and 615 crypto investment schemes.

Despite these efforts, the AFP warns that crypto scams are becoming increasingly sophisticated, making it more challenging to protect potential investors.

The AFP urges the public to be vigilant and question any investment opportunities that promise high returns with little risk.

Global Context: A Growing Concern

The issue of crypto scams is not confined to Australia. Globally, Pig Butchering scams are becoming a significant problem in the crypto industry.

For instance, a recent case in the United States saw a bank executive sentenced to 24 years in prison for running a Pig Butchering scam that defrauded his banking clients out of millions.

The AFP’s report serves as a stark reminder that crypto investment scams are on the rise, with no signs of slowing down.

The under-50 demographic, in particular, must be cautious and well-informed to avoid becoming the next victim of these sophisticated frauds.

The AFP encourages anyone who suspects they may have been targeted by a crypto scam to report it immediately to the authorities. As scams evolve, so must the strategies to combat them, making public awareness and vigilance crucial in the fight against crypto fraud.