Australians have recently experienced significant losses due to cryptocurrency investment scams, with AU$180 million ($122 million) lost over the past 12 months. The Australian Federal Police (AFP) issued a warning on Wednesday, highlighting the growing sophistication and prevalence of these scams. These remarks were made during Scams Awareness Week 2024, which is designed to raise awareness of such schemes.
According to the Australian Cyber Security Centre (ACSC), total investment scams loss for the financial year 2023-2024 reached AU$382 million ($259 million). Of this, 47% related to cryptocurrencies which puts into perspective the role of these assets in scams. The AFP noted a troubling trend: Younger Australians particularly those aged below 50 years are the most affected. Statistics reveal that this age group of people filed 60% of scam complaints.
AFP Collaborates with Banks and Exchanges to Recover Funds from Crypto Scams
Two weeks ago, the Australian Securities and Investment Commission (ASIC) said that it shut down 615 cryptocurrency investment scam websites. This action is among the recent measures employed to eliminate fake investment websites. Despite these efforts, Australians lost AU$1.3 billion ($870 million) to investment scams last year. This massive loss in scams highlights the scale of the problem.
AFP Assistant Commissioner Richard Chin stated that it was wrong to think that only senior citizens are often scammed. He noted that fraudsters employ severe tactics such as pressure and emerging technologies like Deepfake to lure victims into poor investment decisions.
As the threat increases, the AFP has worked with banks and cryptocurrency exchanges to help victims and regain lost funds. Chin also wants the victims to report their ordeal to friends, family, and the community as a way of combating these scams.
The course of action of the AFP consists of a video message explaining how the sophisticated scammers behave and urging the public to be cautious of businesses that appear too good to be true. Thus, the goal is to raise public awareness and avoid more losses by making people aware of the potential consequences of investing in cryptocurrencies.
