Crypto scams and investments defrauded over $242 million in Australia
Since the cryptocurrency has grown in recent years, it has also become a favorite place for fraudsters and cybercriminals to loot money. According to the latest estimates, Australia is recording significant losses indicating that crypto fraud is on the rise in the state.
According to the statistics seen by the Australian Competition and Consumer Commission (ACCC), Australia lost over AUD 242 million to crypto investment scams in 2022. The authority received over 5,300 reports, and 50% of them reported losses. In particular, most of the victims’ ages range from 55 to 65.
Related Reading: Ex-Coinbase Manager’s Brother Pleads Guilty to Insider Trading Charges
As expressed by state officers at a major financial crime police department, the growing number of fraudsters are practicing intelligence and highly sophisticated strategies to appear genuine and get investors to dump their money. The fraudsters reach out to investors as fraudsters who impersonate celebrities or officers. Citing the growing number of crypto scams, the Australian Federal Police (AFP) has criticized the use of cryptocurrencies. Officials see digital assets as “emerging threats” posed today as a financial crime report comes in every eight minutes.
In contrast to last year’s figures, the latest findings indicate an increase in crypto-related crimes representing a 36% increase. Financial cryptocrimes defrauded approximately A$17.82 million in 2021.
As Australian investors lost a large amount, consumer advocates are pushing the banks to be involved in preventing such incidents and refunding money to victimized users. And the endorsement community wants to activate modified policies that help banks secure the identity of a recipient while transferring funds by matching the actor’s name with a bank account, according to the Australian Broadcasting Corporation (ABC) report on September 8.
Crypto scams put the Australian authorities on their toes
In response to the community’s request, banks proposed another option to use to deal with such problems. A large part of the banks in the state referred to using PayID technology which enables consumers to verify names linked to an account and BSB. Although the bank sees it as an alternative, this system does not have suitable processing efficiency.
Due to the increasing crypto scams, exploits and market downturns, Australian authorities have also started to explore crypto-related platforms. Sean Hughes, the commissioner of the Australian Securities and Investments Commission (ASIC), warned Aussies at a Governance Institute conference on Monday that investing in cryptocurrency is “extreme risk-taking”.
ASIC Commissioner further noted;
We want to be very clear and unambiguous in our messages to consumers entering the market. We believe that cryptoassets are highly volatile, inherently risky and complex.
Related Reading: Meet Elon Musk Deep Fakes Used To Promote Crypto Scams
The Australian Federal Police (AFP) formed a dedicated police unit in August to fight cryptocrime. The new unit will detect cybercriminals who bypass the financial system.
Featured image from Pixabay and chart from Pixabay
