Australia has experienced its record high in terms of cryptocurrency investment scams over the past year, nearing up to 200 percent.
According to the Australian Competition and Consumer Commission (ACCC), the consumer watchdog and other related government agencies received 674 scam reports regarding scams that involve cryptocurrency as payment to scammers in 2018. Of the total 674 cases, almost half of the complainants were between the ages of 25 and 34.
Through the ACCC’s 10th annual “Targeting Scams” report, it was revealed that the losses reached a total of a whopping AU$6.1 million, which is 190 percent higher compared to the AU$2.1 million losses to crypto scams way back in 2017.
“Unfortunately, there are also many Australians who are not aware that they are caught up in long-term scams and continue to send money to scammers for years. The losses reported to the government are just the tip of the iceberg,” Delia Rickard, Deputy Chair of ACCC and Chair of Scams Awareness Network, said as quoted on the report.
What online scammers did to get money from their victims, according to the ACCC, was tricking them in buying different cryptocurrencies available through the scammers’ software platform. Unfortunately, the victims won’t get the money when they eventually cash out their investments because the scammers will either make excuses or will no longer be contactable.
These investment scams range from forex trading, commodity trading, to other investment opportunities. The report said there was a total of AU$2.6 million in losses through payments in cryptocurrencies. There were also instances wherein the victims are pressured to go to visit bitcoin ATMs and transfer money to the scammers’ accounts.
“These extraordinary losses show that scammers are causing significant financial and emotional harm to many Australians,” Ms Rickard said. “Scammers are adapting old scams to new technology, seeking payment through unusual methods and automating scam calls to increase their reach to potential victims.”
In addition, Ms Rickard said the total losses when every scam reported has already reached more than AU$489 million. This already includes the reports filed under the ACCC’s Scamwatch program and other government agencies. When compared to 2017’s losses, 2018’s is bigger with AU$149 million in difference.
“The ACCC has been working with banks, financial intermediaries and online classified sites to disrupt scams, but this year we, along with the ACMA and ACSC, would also like to see social media platforms and telecommunications providers doing more to limit the ability of scammers to connect with victims,” Ms Rickard said as quoted on a news article posted on ACCC’s Scamwatch website.
It’s common to use cryptocurrency in the transaction of commodities and different assets, such as properties and services. Australia has already adapted to the use of cryptocurrency as money in purchasing goods faster and more efficiently. To avoid scams, make sure to do research on the scammers’ claims. If it’s about properties, the best take is to look at property listings within your area or that covers the whole of Australia.
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