According to a recent warning by the Australian Federal Police (AFP), Australians have lost up to A$180 million ($122 million) to crypto-related investment scams over the past 12 months.
These crypto losses make up about half of the A$382 million ($259 million) in total investment scam losses during the 2023-24 financial year, signalling a rising threat in the digital investment landscape.
Surprisingly, younger individuals have become primary targets, with 60% of victims under 50 years old. This dispels the common belief that older people are most vulnerable to scams.
AFP Assistant Commissioner Richard Chin highlighted the use of sophisticated scam tactics, such as “pig butchering” and deepfake technology, by fraudsters to deceive victims.
Common Crypto Scam Tactics in Australia
Crypto scammers in Australia use several sophisticated methods to target investors, especially those under 50. These tactics include fake crypto trading apps downloaded from scammer websites, fraudulent trading platforms and wallets that lock out victims after fund deposits, and fake tokens, investments, or job offers that require crypto payments.
Ongoing Scam Threats
In response to the growing number of scams, the Australian Securities and Investments Commission (ASIC) has taken down 615 fraudulent bitcoin investment websites in the past year. However, scammers continue to adapt, refining their tactics to stay ahead of authorities.
Since July 2023, ASIC has helped remove over 7,330 phishing sites, including 5,530 fake investment websites, 1,065 phishing scam links, and 615 crypto investment schemes.
With total losses exceeding $1.3 billion in 2023, investment scams remain the most prevalent type of fraud affecting Australians.
How to Avoid Crypto Scams?
The AFP has urged investors to exercise caution and thoroughly vet any investment opportunities that appear too good to be true, particularly those involving cryptocurrency payments. Heightened public awareness and stronger regulations are needed to protect investments in the digital age, especially as scammers increasingly exploit young investors with deceptive high-pressure schemes.
