How Australians Lost Over $122 Million to Crypto Investment Scams In 12 Months

Australians are falling victim to increasingly sophisticated crypto investment scams, losing over $122 million (AUD $180 million) in just 12 months, according to a recent press release from the Australian Federal Police (AFP). The report reveals that people under 50 are now the primary target of these fraudulent schemes, highlighting a growing trend that younger demographics are increasingly vulnerable to crypto scams.

Crypto Scams on the Rise in Australia

Crypto-related fraud is surging across Australia, with an ever-expanding list of victims as scammers deploy more sophisticated methods to deceive individuals. The AFP’s August 28 press release sheds light on the alarming rise in crypto investment scams, revealing that nearly half of all investment scams reported in the country involve cryptocurrencies.

“Australians reported losing at least $180 million of cryptocurrency in investment scams in just 12 months, with victims now more likely to be under the age of 50 years,” the AFP stated. The agency has joined forces with state and territory police to launch a “Share a Story, Stop a Scam” campaign for Scams Awareness Week, running from August 26 to 30. The goal is to educate the public about the proliferation of scams and the need for vigilance, especially when faced with offers that seem too good to be true.

Crypto Scams Fueling Broader Criminal Activities

The AFP emphasizes that financial gain is the primary motive behind these crypto scams. However, it also warns that the proceeds from these fraudulent activities are often funneled into other illicit operations, including money laundering, drug trafficking, and human exploitation. The agency’s data highlights that the under-50 demographic is increasingly overtaking older Australians as the most reported victims of investment scams, reflecting a shift in the scammers’ focus.

Investment Scams Cost Australians $260 Million in One Year

In its press release, the AFP reported that Australians lost a staggering $260 million to investment scams during the 2023/2024 financial year, with nearly half of these scams involving cryptocurrencies. This figure underscores the growing threat of crypto fraud in the country and the need for increased public awareness and protective measures.

The AFP also identified two of the most prevalent types of scams impacting Australians:

• Pig Butchering Scams: In these scams, fraudsters build long-term relationships with their victims, gaining their trust over time before convincing them to invest in fake schemes. This method is particularly effective because it manipulates the victim’s emotions and trust.
• Deepfake Scams: Scammers use deepfake technology to impersonate well-known personalities, convincing victims to invest in fraudulent schemes. These scams exploit the credibility of public figures to lure unsuspecting individuals into losing their money.

The AFP is urging the public to be vigilant and cautious of investment opportunities that promise unrealistic returns. “If it sounds too good to be true, it probably is,” the agency warned.

Key Takeaways on Crypto Investment Scams in Australia

Australia’s battle against crypto fraud has intensified, with several agencies taking proactive measures to combat the rise in scams. The Australian Securities and Investments Commission (ASIC) has disclosed that since July 2023, it has coordinated the takedown of 7,300 phishing websites, 5,530 fake investment platforms, 1,065 phishing scam links, and 615 fraudulent crypto investment schemes.

Global Impact of Pig Butchering Scams

Pig Butchering scams are not only a growing problem in Australia but are also affecting the global crypto industry. For instance, in the United States, a bank executive was sentenced to 24 years in prison for running a Pig Butchering scam that defrauded his banking clients. This highlights the international reach and impact of such scams, further underscoring the need for global awareness and cooperation to tackle the issue.

Staying Safe in the Face of Rising Crypto Fraud

With the increase in crypto investment frauds, Australians are advised to remain cautious and skeptical of any investment opportunities that sound too promising. As scammers continue to evolve their tactics, public education and awareness are key to preventing further financial losses. The AFP and other authorities are encouraging everyone to share their stories and report any suspicious activity to help stop the spread of scams.