Australian crypto scams increased by over 162% with nearly $150M lost

Australians lost $148.3 million (A$221.3 million) to investment scams using cryptocurrencies as a payment method in 2022. This is a 162.4% increase for him from 2021.

According to the April 17 fraud report The Australian Competition and Consumer Commission (ACCC), the national consumer regulator, has reported a total of 3,910 cryptocurrency fraud cases, stripping the average Australian victim of $37,900 (AUD$56,600). rice field.

The $148.3 million figure represents 7.1% of the total $2.08 billion (A$3.1 billion) worth of fraud reported in Australia in 2022.

As governments, law enforcement and the private sector seek to improve their collaborative efforts to support communities in fighting fraud, the latest Targeted Fraud Report finds Australians will face a record number of deaths in 2022. It revealed that it lost $3.1 billion to fraud. https://t.co/3f9C3Uoltv pic.twitter.com/OGj6TkygnK

— ACCC (@acccgovau) April 16, 2023

Bank transfers remain the largest fraudulent payment method, with nearly 13,100 reports totaling $141 million, $7.3 million less than cryptocurrency payments.

The average value of each bank transfer payment fraud was approximately $10,700 (AU$16,000). This means that cryptocurrency scammers were able to steal 250% more of her value from each victim.

Data shows that cryptocurrency scammers primarily contact victims through social media and network apps, while bank payment scammers often contact them by phone and email.

April 17th statement, ACCC Vice Chair Catriona Law attributes the surge in fraud in part to new technologies that make it easier to “lure and deceive victims” with increasingly “sophisticated” tactics.

“We have seen amazing new tactics emerge that make fraud incredibly difficult to detect. This includes everything from website spoofing to fraudulent text that appears in the same conversation thread as the genuine message.”

“This means that more than ever, anyone can fall victim to fraud,” she added.

Lowe emphasized that while the numbers are “worrisome,” the “true cost” of the damage has not yet been factored in.

“Australians will lose more money than ever to fraud in 2022, but the true cost of fraud will be well over $1 due to the emotional distress it inflicts on victims, their families and businesses. increase.”

Lowe explained that the Australian government, law enforcement and the private sector need to work together more effectively to “fight” fraud and reduce its numbers.

Related: Australians Revealed as Primary Targets of Israeli Crypto Fraud Syndicate

According to data from Scamwatch, the ACCC’s fraud database, the average Australian investment fraud victim is a 65-year-old man who is contacted on social media or responds to fraudulent advertisements.

They can be scammed for “months” before realizing they’ve been scammed.

Fraudulent bond offers, initial public offerings (IPOs), relationship or hog slaughter schemes, and money collection services are among the most common investment scams reported.

In its report, the ACCC found that fraud losses went unreported, with only 13% of victims reporting incidents to Scamwatch, while approximately 30% of victims of fraud did not report it to anyone. “Much more” than there are.

ACCC’s Scamwatch, ReportCyber, Australian Financial Crimes Exchange (AFCX), and other agencies compiled the data for the report.

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