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

A worrisome trend has involved Australians losing as much as A$180 million ($122 million) to investment scams related to crypto over the last 12 months, says a recent warning from the Australian Federal Police (AFP).

The figure represents about half of the A$382 million ($259 million) losses to all investment scams in the 2023-24 financial year, putting into light a growing threat in the digital space of investing.

Contrary to general perceptions, the current targets of these scams are really young people. The AFP claims that 60% of scam victims are under 50 years of age. That dispels the myth on how older people are the most vulnerable ones.

According to AFP Assistant Commissioner Richard Chin, scammers have now started using sophisticated tactics like “pig butchering” and deepfake technology in order to actually dupe their victims.

Australians reported losing at least $180 million of cryptocurrency in investment scams in just 12 months, with victims now more likely to be under the age of 50 years. https://t.co/H1PFHtop4q

— AFP (@AusFedPolice) August 27, 2024

Most Common Crypto Scam Tactics Used In Australia

There are a number of class-leading tactics that crypto scammers in Australia have been using to rip victims off, especially those under 50 years old.

The most often used would be fake crypto trading apps downloaded from the scammer’s website instead of the app stores; fake trading platforms and wallets acquiring access credentials or lock out victims after fund depositing; Fake tokens, investments, and employment whereby crypto payment is just necessary.

Ongoing Threats

In its larger effort of eradicating bogus websites that promise investment, the Australian Securities and Investments Commission has already taken down 615 bitcoin investment frauds in the last year alone.

In any instance, con artists change in sophistication to keep ahead and keep investors under observation.

Since July 2023, ASIC said it has helped to remove more than 7,330 phishing sites, including 5,530 bogus investment sites, 1,065 phishing scam links and 615 crypto investment schemes.

With total damages exceeding $1.3 billion in 2023, investment scams remain the most often occurring kind of fraud to which Australians have fallen victim.

The AFP has also issued a plea to all for caution since investments that seem quite attractive should be closely examined for their qualifications and should be wary of crypto demands.

The financial frauds using cryptocurrencies call for more public knowledge and legislative control to protect the investments made in this digital age.

This makes it particularly important that investors be very cautious and take the time to learn about the dangers of high-pressure investment schemes, as fraudsters increasingly exploit the vulnerabilities of younger investors through various forms of deceit.

Featured image from Pexels, chart from TradingView