Aussies already lost $242 million to investments and crypto scams in 2022
Australians have continued to be duped by investment and crypto-related scams, losing A$242.5 million to fraudsters so far in 2022, according to Scamwatch’s latest data.
From January to July this year, the majority of all funds were lost to fraud of all types of investment scams, ranging from romance scams to classic Ponzi schemes and cryptocurrency scams.
The figure is already 36% higher than the figures for the whole of 2021, which revealed that Australians lost AUD 178.2 million to investment fraud in the year.
It’s a threat that has prompted consumer advocates to push for banks to take more responsibility for repaying fraud in order to “drive greater investment in stopping fraud”.
According to a report by the Australian Broadcasting Corporation (ABC) on September 8, advocacy groups are pushing for reforms requiring banks to check that the recipient’s name matches the account name when transferring money online.
“The key reform is to shift that responsibility from individual consumers to banks when it comes to fraud losses,” said Consumer Action Law Center Executive Director Gerard Brody.
“The [banks] asks you for the account name, but they don’t actually check.”
However, the banks want more customers to adopt the optional PayID technology, which allows customers to see the name linked to a BSB and account number.
Brody said it was clear that the optional system that forces consumers to be solely responsible for preventing fraud is not working.
Australian authorities appeared to have stepped up scrutiny of the crypto space amid an increase in crypto scams, hacks and the general market downturn.
On September 11, Australian Securities and Investments Commission (ASIC) Commissioner Sean Hughes is said to have urged investors to understand that investing in crypto-assets is a form of “extreme risk-taking”.
“We want to be very clear and unequivocal in our messaging to consumers entering the market,” ASIC Commissioner Sean Hughes said at a Governance Institute conference, as reported by local media, adding:
“We believe that cryptoassets are highly volatile, inherently risky and complex.”
In August, the Australian Federal Police created a dedicated team to monitor crypto-related transactions, after previously calling cryptocurrency an “emerging threat” amid an increase in criminal activity surrounding the technology.
Related: “Too Easy” — Crypto researcher’s fake Ponzi raises $100,000 in hours
The month also saw the new Australian Labor government announce its stance on crypto regulation, while crypto exchange Binance Australia also announced in August that it was tightening its processes for new users to protect people labeled as most vulnerable to financial crypto-crime.
