Australians lose $122m to crypto scams, with under-50s most affected

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As a seasoned researcher with a decade of experience studying financial crimes and cybersecurity, I find the surge in crypto investment scams in Australia alarming and disheartening. The increasing targeting of younger individuals is particularly concerning, as they are often less experienced and more vulnerable to these sophisticated tactics.

In the span of a year, more than 120 million Australian dollars were stolen through fraudulent cryptocurrency investments, with individuals younger than fifty making up a significant number of victims.

Investment frauds involving cryptocurrencies are on the rise in Australia, particularly affecting a younger demographic who are becoming more vulnerable due to the increasing complexity of scam methods used by con artists.

In the last year, Australians have collectively lost over AUD$180 million (approximately $122 million) due to crypto investment scams, as reported in a press release by the Australian Federal Police on August 28th. Notably, younger individuals are becoming more frequently targeted, making up around 60% of these scam cases. The data from the AFP shows that almost half of all reported investment scam losses involve cryptocurrencies.

“Most fraudsters are driven by the desire for monetary profit. The money they swindle may not only line their pockets but also fund other illegal activities like money laundering, drug trafficking, or even human exploitation in the future.”

Richard Chin, AFP assistant commissioner

In the 2023-24 fiscal year, the Australian Federal Police reported that Australians collectively lost approximately AUD$382 million, which is equivalent to around $260 million U.S. dollars, due to investment frauds. Remarkably, about 45% of these investment scam losses were linked to cryptocurrency-related schemes.

In collaboration with local law enforcement from states and territories, a national security organization is advising the public to stay cautious, particularly when encountering investment proposals that appear unusually attractive. They’ve drawn attention to strategies like “pig butchering,” where fraudsters develop lasting relationships with victims before persuading them to invest, as well as the deployment of deepfake technology to mimic trusted individuals.

Australia braces for surge in crypto scams

Starting from next July 2023, actions have been taken to remove more than 7,300 fraudulent websites, with a focus on 5,530 deceptive investment platforms, 1,065 phishing scam links, and 615 crypto investment scams, as per the Australian Securities & Investments Commission’s recent disclosure.

Investment scams remain the most common form of fraud impacting Australians, resulting in a staggering $1.3 billion in losses during 2023. The Australian Securities and Investments Commission (ASIC) linked this widespread activity to phishing tactics, often involving fake news articles and deepfake videos showcasing public figures advocating for sham online investment schemes, predominantly on social media platforms.

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2024-08-28 10:02