Crypto-related scams are rampant in Australia. In fact, in the first six months this year, Australians have lost A$70million ($50.5 million) from fraudulent investments, of which half was from crypto scams.
According to the Australian Competition and Consumer Commission (ACCC), Scamwatch revealed that there was a 53.4% increase in scam reports. It also added that the cost of these scams will continuously rise and surpass $101 million by the end of 2021.
Delia Rickard, deputy chair of ACCC, said that of the 4,763 scam reports received by the Commission, 2,240 of them were related to crypto. Most of these crypto scams involved Bitcoin.
Luring victims
Rickard shared that one of the most common tactics that scammers use to lure investors is by using fake trading platforms with celebrity endorsements and, of course, the most attractive bait of all: “high earnings.”
“Be wary of investment opportunities with low risk and high returns. If something sounds too good to be true, it probably is,” Rickard said.
Scammers also allow investors to withdraw their “earnings” from the fake platform, which in reality, comes from other victims. After successfully gaining the trust of investors, scammers would eventually stop them from withdrawing their funds.
This formula has been so effective that almost all fake platforms operated in this way, which enabled them to lure more victims.
Rising crypto scams
Bitcoin scams have already cost Australians $18.5 million, which was a significant increase from last year’s $12.8 million. Aside from crypto scams, Australia is also “infested” with other bogus schemes, including impostor bond, romance baiting, and Ponzi scams.
To arrest the rising cases of crypto scams in the country, the Australian Securities and Investments Commission (ASIC) has urged Australian citizens to stop investing on unlicensed crypto platforms.
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