The Australian Federal Police (AFP) has issued a stark warning about the growing threat of cryptocurrency scams, revealing that Australians have lost an astounding AUD 180 million (USD 122 million) to these fraudulent schemes in just one year. This alarming figure underscores the increasing sophistication and prevalence of such scams, particularly in the investment sector, and highlights a disturbing trend: younger Australians are becoming prime targets.
Surge in Crypto Scams: A Worrying Trend
Recent data from the Australian Cyber Security Centre (ACSC) paints a grim picture of the financial landscape in Australia. In the 2023-24 financial year, investment scams cost Australians a jaw-dropping AU$382 million ($259 million), with nearly half of these losses—47%—involving cryptocurrency. This surge in crypto-related scams underscores the increasing popularity of digital assets among investors and the corresponding rise in fraudulent activities targeting these assets.
Younger Australians at Greater Risk
Contrary to popular belief, it’s not just older individuals falling prey to these scams. The AFP has reported a significant shift in the demographic of victims, with those under the age of 50 now being the most susceptible. In fact, 60% of the scam reports received by the police were from individuals in this age group, challenging the stereotype that scams primarily target the elderly.
Earlier this month, the Australian Securities and Investments Commission (ASIC) announced that it had shut down 615 cryptocurrency investment scams in its first year of a dedicated program aimed at tackling fake investment websites. Despite these efforts, Australians collectively lost AU$1.3 billion ($870 million) to investment scams last year alone, a figure that highlights the massive scale of this issue.
Also Read: Australian Regulator Cracks Down 600+ Crypto Scams in a Year
The Tactics Behind the Scams
AFP Assistant Commissioner Richard Chin emphasized that the data dispels the notion that only older people fall victim to scams. He pointed out that scammers are increasingly employing sophisticated tactics to deceive their victims, with two prevalent methods being “pig butchering” and the use of deepfake technology.
Pig butchering refers to a scam where the victim is fattened up with promises of high returns, only to be slaughtered financially when they invest large sums of money. Deepfake technology, on the other hand, involves the use of AI-generated videos or audio recordings to impersonate trusted individuals, adding a layer of authenticity to the scams.