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28/08/24
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Cryptocurrency Scams Cost Australians $122 Million in Past Year, New Report Reveals
In the past year, Australians have suffered significant financial losses due to cryptocurrency scams, totaling approximately $122 million (around $180 million AUD). This alarming statistic comes from a report released by the Australian Federal Police (AFP), which highlights the broader issue of investment scams, amounting to $269 million (about $382 million AUD) in total losses. Notably, almost half of these scams were related to cryptocurrencies.
The report notes a surprising demographic trend, revealing that nearly 60% of those affected by these scams are individuals under 50 years old. This marks a shift in the profile of scam victims, traditionally believed to be older Australians who are often more vulnerable to fraudulent schemes. The AFP has identified certain modern scam tactics that have gained traction, particularly “pig butchering” and deepfake technology.
Pig butchering is a method where scammers establish a personal connection with victims through social media or other platforms before ultimately persuading them to invest in counterfeit ventures. Meanwhile, deepfake technology employs artificial intelligence to create realistic audio and video of well-known personalities, including celebrities, to promote deceptive investment opportunities. Among the most exploited figures is Elon Musk, whose likeness is often utilized to lend credibility to these fraudulent schemes.
Law enforcement agencies believe the reported figures may only represent a fraction of the actual losses, as many victims either do not realize they have been scammed or feel ashamed to report their experiences. The AFP warns that scams promising high returns with little risk should be approached with skepticism, as these advances often fund other criminal activities, such as money laundering.
Additionally, recent data from Scamwatch indicates that investment scams, including those not exclusively tied to cryptocurrencies, continue to be a major source of financial loss among Australians, with reports indicating over $68 million (approximately $100 million AUD) lost in the current year alone. Contrarily, Scamwatch data suggests that the majority of victims in this category are over 50, further underscoring the complexity of the scam landscape in Australia.
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