Crypto Scams in Australia Jumped by 162% in 2022: Report
- Australia reported a rise of over 162% in crypto scams, and the total money lost by investors to such scammers amounted to $148.3 million.
- As per the Australian Competition and Consumer Commission (ACCC) report, 910 crypto scam incidents were reported in total in 2022.
- The average Australian investor was duped for $37,900 (AUD$56,600), with bank transfers being the most popular scamming method.
- Crypto scammers mostly reached out via social media platforms, while bank payment scammers contacted their victims via phone and email.
The incidents of crypto scams, implemented in various ways, were reported to law enforcement agencies throughout the world in 2022, which was tainted as one of the worst years for the crypto industry, marked by the collapse of countless crypto companies and numerous multi-million dollar hacks. Interestingly, Australia reported a rise of over 162% in crypto scams as per a report, and the total money lost by investors in the region to such scammers amounted to $148.3 million (AUD$221.3 million).
According to the April 17 scam activity report from the Australian Competition and Consumer Commission (ACCC), the chief competition regulator of the Government of Australia governed by the Department of Treasury, 3,910 crypto scam incidents were reported in total in 2022, and the average Australian investor was duped for $37,900 (AUD$56,600).
“Our latest Targeting Scams report has revealed Australians lost a record $3.1 billion to scams in 2022, as government, law enforcement, and the private sector look to improve collaborative efforts to support the community in the fight against scams,” said the ACCC.
Another important point conveyed by the report was that the $148.3 million figure represents 7.1% of the total scams in Australia, which cost investors around $2.08 billion (AUD$3.1 billion) in total. Furthermore, the report from the regulator confirms that bank transfers are the most popular scamming methods for attackers, with nearly 13,100 reports totaling $141 million.
Additionally, the bank payment transfer method for crypto scammers averaged out at $10,700 (AUD $16,000) per incident, which confirms that the scammers were able to dupe each investor for 250% more value. On the other hand, the crypto scammers mostly reached out via social media platforms and networking websites, while bank payment scammers contacted their victims via phone and email.
The regulator stated that “more coordinated effort is required across government, the private sector, and law enforcement to combat scams,” and safeguard investors in Australia, while adding:
“Businesses need to be vigilant and implement effective monitoring and intervention processes to prevent scammers using their services and stop them when they do. Identity, verification and communication processes need constant review as scammers constantly evolve. We need to arm consumers with the tools to give them the best chance to identify scams, whilst also recognizing that humans aren’t going to stop being human any time soon,” said the ACCC.
The Deputy Chair of ACC, Catriona Lowe, stated that the spike in the number of crypto scams can be attributed to the fact that it has become easier to “lure and deceive victims” with increasingly “sophisticated” tactics due to the advancement of technology and lack of understanding among common investors in Australia.
Lowe added that the regulator has seen new tactics emerge that are very difficult to detect. These include “everything from impersonating official phone numbers, email addresses, and websites of legitimate organizations to scam texts that appear in the same conversation thread as genuine messages,” she added.
As reported last year by BitcoinWisdom, Australian Senator Andrew James Bragg announced the release of a new draft bill, titled Digital Assets (Market Regulation) Bill 2022, with the goal of bringing a massive crackdown on cryptocurrency exchange platforms, stablecoins, and other digital assets.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
