Australians lose $122 million to crypto scams in a year

According to a recent warning from the Australian Federal Police (AFP), Australians have lost A$180 million ($122 million) to cryptocurrency-related investment scams over the past year.

This figure accounts for nearly half of the total A$382 million ($259 million) lost to all investment scams during the 2023-24 financial year, highlighting the growing threat of digital fraud in the investment sector.

Contrary to the belief that older individuals are more susceptible, the AFP reports that 60% of those affected are under 50 years old.

AFP Assistant Commissioner Richard Chin noted that scammers are now using more sophisticated tactics like "pig butchering," which involves gradually convincing victims to invest in fake opportunities, and deepfake technology to deceive their targets.

In Australia, scammers employ various methods to exploit victims, especially those under 50.

These tactics include creating fake cryptocurrency trading apps available only on scam websites rather than legitimate app stores, establishing fake trading platforms and wallets that steal access credentials or lock victims out after they deposit funds, and offering fake tokens, investments, or jobs where payments are required in cryptocurrency.

The Australian Securities and Investments Commission (ASIC) has been working to counter these schemes, taking down 615 fraudulent bitcoin investment websites in the past year alone.

ASIC also reported removing over 7,330 phishing sites since July 2023, including 5,530 fake investment websites, 1,065 phishing scam links, and 615 crypto investment schemes.

However, scammers continue to evolve their tactics, making it increasingly difficult to protect potential investors.

The AFP advises individuals to carefully scrutinise any investment opportunities that seem unusually attractive, particularly those requiring cryptocurrency payments.

Greater public awareness and stronger regulatory controls are necessary to safeguard investments, as scammers increasingly target younger investors with deceptive schemes.

With investment scams remaining the most common type of fraud in Australia and total damages exceeding $1.3 billion in 2023, it is crucial for investors to stay vigilant.

Understanding the risks of high-pressure investment tactics is essential to preventing financial losses in a landscape where fraudsters are becoming more skilled at exploiting the vulnerabilities of younger, less experienced investors.