Crypto-Related Frauds Lead Australia’s $259M Investment Scam Epidemic
Australian Police launch scam awareness campaign|Credit:Photo by Matt Jelonek/WireImag
- Australian Federal Police launch a scam awareness campaign amid growing investment scam epidemic.
- Australia reported $259 million in losses to investment scams, 47% of which were linked to cryptocurrency.
- Crypto losses from hacks and scams rise by 24% for the first two quarters of 2024.
Cryptocurrency’s growing allure has also attracted a less savory element: scammers.
Australia, a country at the forefront of crypto adoption, has seen a significant spike in crypto-related investment scams recently.
According to the Australian Cyber Security Centre , citizens lost over A$382 million ($259 million) to investment scams in 2023-24, with a disturbing 47% of those scams involving cryptocurrency.
A Shocking Trend
The investment scam report has revealed a disturbing pattern: 60% of scam victims are under the age of 50. This statistic contradicts the common assumption that only older generations are vulnerable to these scams.
AFP Assistant Commissioner Richard Chin emphasized that scammers are using advanced tactics to target victims of all ages.
“Scammers often use pressure tactics and different methodologies to lure victims into making poor investment decisions, with promises of high returns and little risk,” he warned.
Chin highlighted two common tactics used by scammers: pig butchering, which involves building a relationship with the victim over time and then persuading them to invest in fraudulent schemes, and Deepfakes, which use artificial intelligence to create fake investment ads and articles featuring prominent public figures.
These tactics are highly effective, and the AFP is urging the public to be vigilant and report any suspicious activity immediately.
Investment Scams Top the Chart
Over the past year, online investment scams have become an epidemic in Australia, with cryptocurrency-related fraud being a significant contributor to this trend.
The Australian Securities and Investments Commission (ASIC) recently reported that it had taken down over 5,000 fake investment websites, 600 of which were linked to cryptocurrency scams.
Just last month, ASIC shared that it removed over 5,000 fake investment websites, of which 600 were linked to crypto.
According to the report, enforcement was much needed, considering that investment scams caused losses of $1.3 billion in 2023.
In response to the alarming losses, with Australians suffering over $259 million in damages, the Australian Federal Police is scaling up its awareness campaign to combat the growing threat of online investment scams.
Australia Launches Public Campaign
The Australian Federal Police has now taken responsibility for raising public awareness of the growing menace of crypto scams.
As part of this effort, authorities have now started a campaign called the Scam Awareness Week to educate citizens about the risks associated with these investment scams.
Scheduled between Aug. 26 and 30, the AFP is urging citizens to ‘share a story, stop a scam’ and speak out against these fraudulent schemes.
Crypto Scams: A Growing Problem Becoming More Complex With Tech
Crypto scams are growing each year, and with new technology such as Artificial Intelligence, detecting them before they cause havoc has become more complex.
A recent report from on-chain analytic firm Immunefi revealed 72 instances of hacking on different protocols, resulting in net losses of over $572.6 million. Of this total loss, $8.45 million was lost to fraud across 19 specific incidents.
The total loss for the first two quarters of 2024 rose to $920 million, a 24% increase from the last year.
The net loss of Q2 2024 shows a 112% increase compared to Q2 2023. Centralized finance was the primary victim of all crypto hacks in the second quarter, accounting for 70% of the total losses.
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