Australians fell victim to crypto scams totaling 180 million Australian dollars ($122 million) over the past 12 months. According to the Australian Federal Police (AFP) report, the majority of victims are under the age of 50.
On 28 August 2024, the AFP revealed that a staggering $382 million AUD ($269 million) had been lost to various investment scams over the past year. Notably, 47% of these losses were linked to cryptocurrency-related fraud.
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60% Victims Were From Younger Demographics
Contrary to the common perception that older individuals are more vulnerable to scams, approximately 60% of victims were from the younger demographic. This shows a trend where tech-savvy individuals are increasingly targeted by sophisticated scams.
The AFP report said that the methods employed by scammers have become advanced, leveraging modern technology to deceive victims. It identified “pig butchering” and the use of deepfakes as the two most prevalent types of scams.
AUSTRALIANS LOSE OUT TO CRYPTO SCAMS
Australians lost a shocking $122 million to cryptocurrency scams in just 12 months, according to the Australian Federal Police (AFP).
Contrary to the common belief that older people are the main targets, 60% of the scam victims are under 50… pic.twitter.com/PNrDjr2HyQ
— Crypto Town Hall (@Crypto_TownHall) August 28, 2024
Pig butchering involves fraudsters building personal relationships with victims through social media or other platforms. The scamsters gradually gain the victim’s trust before persuading them to invest in bogus schemes.
Deepfakes, on the other hand, utilize AI to create realistic audio and video imitations, often featuring well-known figures such as Tesla CEO Elon Musk, to endorse fake investment opportunities.
Assistant Commissioner Chin emphasized that the reported figures likely represent just a fraction of the actual losses, as many victims may not realize they have been scammed or are too embarrassed to report their experiences.
“If an investment opportunity sounds too good to be true, then it probably is,” Chin cautioned. He also warned that the funds stolen by scammers could be used to finance other criminal activities, including money laundering and drug trafficking.
The Australian Government’s Scamwatch website corroborates the AFP’s findings, noting that investment scams remain the leading cause of financial loss among Australians.
Reports from Scamwatch show that more than $100 million AUD ($68 million) has been lost to such scams in 2024 alone, with a significant number of victims being over 50, diverging slightly from the AFP’s data.
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Australian Regulator Removes 600 Crypto Scam Sites
Australia’s financial markets conduct regulator (ASIC) has removed over 600 crypto scams over the past 12 months.
The regulator also helped take down 5530 fake investment platform scams, 1065 phishing scam hyperlinks, and 615 crypto investment scams.
Australia has been intensifying its scrutiny of the cryptocurrency industry in recent times. Last year, officials from the Australian Securities and Investments Commission (ASIC) searched Binance Australia’s offices.
In March, Australia’s prudential regulator instructed banks to report their exposures to crypto firms and startups. This command followed the collapse of Silicon Valley Bank.
The Australian Prudential Regulation Authority (APRA) called for improved reporting on crypto assets and requested daily updates from banks to gain deeper insight into potential vulnerabilities in the system.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
