Cryptocurrency Scams on the Rise in Australia
In a recent crackdown by the Australian Securities and Investments Commission (ASIC), a staggering 615 cryptocurrency scams were busted within a span of 12 months. The statement released on August 19 highlighted the use of artificial intelligence by scammers to deceive Australians through fake news articles, comments, and deepfake videos on social media platforms.
Evolution of Cryptocurrency Scams
ASIC Deputy Chair Sarah Court expressed concerns about the evolving nature of cryptocurrency scams, with scammers utilizing advanced technologies like artificial intelligence to steal money and sensitive information from unsuspecting victims. The regulatory body reported shutting down an average of 20 scam websites daily, with losses exceeding $1.3 billion in 2023 alone, despite a noticeable decrease following the crackdown.
Working in collaboration with government agencies and third-party companies, securities regulators strive to eliminate fraudulent investment platforms and phishing links promising lucrative returns in cryptocurrencies and other sectors such as artificial intelligence.
Impact on Australian Investors
The Australian cryptocurrency industry has been plagued by scams, as evidenced by recent legal action taken against tech giant Meta for allowing fraudulent crypto ads on Facebook. The investigation, initiated in 2022, revealed over 600 ads exploiting fake celebrity endorsements to promote cryptocurrency scams, leading users to malicious platforms designed to deceive investors.
According to Scamwatch, investment scams have cost Australian investors over $78 million, with cryptocurrencies serving as a popular payment method in such schemes, as reported by national financial intelligence agency AUSTRAC. Consequently, major banks have distanced themselves from the cryptocurrency industry to mitigate risks associated with fraudulent activities.
ASIC urges residents to exercise caution, conduct thorough research, and refer to ASIC’s Investor Alerts to verify the legitimacy of investment opportunities. In case of financial information sharing or fund transfers, individuals are advised to contact their banks promptly if anything seems amiss.
As technology continues to advance, regulators and authorities must remain vigilant in combating cryptocurrency scams to safeguard the interests and investments of individuals in Australia and beyond.
