Australia Loses $122 Million To Crypto Scams — Young Investors Hit Hard

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As a seasoned crypto investor with a fair share of battle scars to show for it, I can’t help but feel a sense of unease reading about the recent surge in investment scams targeting Australians. The figures are staggering – A$180 million lost in just 12 months! It’s a harsh reminder that this digital frontier isn’t always as friendly as it seems.

Over the past year, it’s been reported that Australians have collectively lost up to A$180 million ($122 million) due to investment frauds linked with cryptocurrencies. This is according to a recent caution issued by the Australian Federal Police (AFP).

In the realm of my crypto investments during the 2023-24 fiscal year, it’s disheartening to acknowledge that I’ve experienced losses equivalent to roughly half of the A$382 million ($259 million) incurred due to investment scams across the board. This starkly underscores the escalating danger lurking within the digital investing sphere.

It’s a common belief that older individuals are the primary targets for scams, but that’s actually a misconception. The Australian Federal Police (AFP) has stated that about 60% of their scam victims are under 50 years old. This contradicts the widespread notion that it’s primarily the elderly who fall prey to these schemes.

Based on information from AFP’s Assistant Commissioner Richard Chin, scam artists are employing advanced strategies such as “pig butchering” and deepfakes to successfully deceive their targets.

In the past year, it’s been estimated that Australians have collectively lost over $180 million in cryptocurrency investments due to fraudulent schemes. Interestingly, those most targeted by these scams are typically younger than 50 years old.

— AFP (@AusFedPolice) August 27, 2024

Most Common Crypto Scam Tactics Used In Australia

In Australia, crypto scammers have been employing several top-tier strategies to defraud their victims, particularly individuals below the age of 50.

A common occurrence involves people accidentally downloading fraudulent crypto trading apps from dubious websites rather than official app stores. These counterfeit platforms and digital wallets then either steal login credentials or lock users out once funds are deposited. Additionally, there are fake tokens, investment opportunities, and job postings where the requirement for cryptocurrency payments is simply a disguise.

Australia Loses $122 Million To Crypto Scams — Young Investors Hit Hard

Ongoing Threats

Over the past year, the Australian Securities and Investments Commission (ASIC) has successfully shut down no less than 615 fraudulent bitcoin investment schemes as part of their broader mission to eliminate misleading financial platforms.

Regardless of the situation, swindlers adapt their tactics to stay a step ahead, always watching over potential investors.

From July 2023 onwards, ASIC has aided in the takedown of over 7,330 fraudulent websites, including 5,530 fake investment platforms, 1,065 phishing scam links, and 615 sham crypto investment schemes.

2023 saw investment scams as the most frequent type of fraud, causing a staggering total loss of over $1.3 billion for Australian victims, highlighting their prevalence.

How To Avoid Crypto Scams?

The AFP advises everyone to exercise caution when considering investments that appear very appealing, as they should carefully scrutinize their legitimacy and be cautious about any requests related to cryptocurrencies.

In simpler terms, it’s essential that people understand more about financial scams involving cryptocurrencies and that laws are enacted to regulate these transactions to safeguard investments in our digital era.

It’s crucial for investors to exercise extreme caution and educate themselves thoroughly on the risks associated with aggressive investment strategies, given that con artists are growing more adept at preying upon the susceptibilities of novice investors using different tactics of misrepresentation.

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2024-08-29 12:42