In a chilling reminder of the darker side of the cryptocurrency boom, Australians have been warned that they’ve lost a staggering AUD 180 million (approximately $122 million) to investment scams over the past year. This hefty sum is a stark 47% of the total AUD 382 million lost to various investment frauds during the 2023-24 financial year, as reported by the Australian Federal Police (AFP).
The rise in crypto-related scams is not just a statistic—it’s a growing threat that affects people across age groups. Contrary to the common misconception that only older individuals fall prey to these scams, the AFP has revealed that the majority of victims are now under 50. In fact, 60% of scam reports came from this younger demographic. This shift highlights a disturbing trend where even tech-savvy individuals are not immune to sophisticated fraudulent schemes.
Two particularly troubling scam techniques are at the forefront: “pig butchering” and deepfake technology. Pig butchering involves scammers fattening up victims with enticing returns before making off with their money. Deepfake technology, on the other hand, uses manipulated media to create convincing but fake personas and scenarios to deceive investors.
This report underscores the urgent need for vigilance in the crypto space. As scams become more sophisticated, the imperative for investors to stay informed and cautious has never been greater. The Australian Securities and Investments Commission (ASIC) has been actively shutting down fraudulent crypto investment platforms, having closed 615 such scams in its first year of operation. Yet, the battle against these scams is ongoing, with Australians losing a colossal AUD 1.3 billion (about $870 million) to investment scams last year alone.
As the crypto market continues to evolve, this stark warning from the AFP serves as a crucial reminder to approach investments with a healthy dose of skepticism and diligence.
