Australians Lose $122M in Crypto to Scams in 12 Months

Younger Australians increasingly targeted as scams grow more sophisticated, warns Australian Federal Police.

Australians have lost a staggering AUD 180 million (USD 122 million) in cryptocurrency to investment scams over the past 12 months, according to the Australian Federal Police (AFP). This figure represents nearly half of the total AUD 382 million (USD 259 million) lost to investment scams during the 2023-24 financial year, highlighting the growing threat of cryptocurrency fraud.

The data, gathered by the Australian Cyber Security Centre (ACSC), underscores the increasing prevalence of crypto-related scams. The AFP emphasized that the victims of these scams are now more likely to be under the age of 50, challenging the common perception that only older individuals fall prey to such schemes. In fact, 60% of the scam reports made to police came from individuals in this younger demographic.

AFP Assistant Commissioner Richard Chin stressed that it is a misnomer to think only older people are targeted by scammers. "Scammers often use pressure tactics and different methodologies to lure victims into making poor investment decisions," Chin said, highlighting two particularly common tactics: "pig butchering" and deepfake technology.

"Pig butchering" is a type of scam where fraudsters cultivate long-term relationships with victims, often through social media or dating platforms, before convincing them to invest in fraudulent schemes. The term comes from the practice of "fattening up" the victim with promises of wealth before "butchering" them by taking their money.

Deepfake technology, which uses artificial intelligence to create highly realistic but fake images, videos, or audio, is increasingly being used by scammers to impersonate trusted figures and manipulate victims into making financial transactions.

The Australian Securities and Investments Commission (ASIC) has also been active in combating these scams, shutting down 615 fake cryptocurrency investment websites in the first year of a program aimed at tackling such fraud. ASIC reported that Australians lost a total of AUD 1.3 billion (USD 870 million) to investment scams last year alone.

The AFP’s warning comes as part of a broader effort to raise awareness about the risks associated with cryptocurrency investments, especially as scammers become more sophisticated in their techniques. The public is urged to remain vigilant and to report any suspicious activity to the authorities.

The rapid growth of the cryptocurrency market has made it an attractive target for criminals, and the AFP’s announcement serves as a stark reminder of the importance of due diligence and skepticism when it comes to investment opportunities.

photo source / Blockonome