Australian Federal Police Warns Citizens Over Crypto Investment Scam, $122M Lost in 12 Months

Author

Sujha Sundararajan

Author

Sujha Sundararajan

About Author

Sujha has been recognised as 🟣 Women In Crypto 2024 🟣 by BeInCrypto for her leadership in crypto journalism.

Share

Last updated:

August 28, 2024 05:22 EDT

Why Trust Cryptonews

With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews

Australians have reportedly lost at least AU$180 million ($122 million) in crypto investment scams over the past year. The Australian Federal Police (AFP) has issued warning on Wednesday, against the proliferation and sophistication of crypto-related investment scams.

The cautionary note comes as a part of the Scams Awareness Week 2024 in Australia, a campaign to report fraudulent schemes. The AFP joined the awareness with state police to encourage citizens to ‘share a story, stop a scam.’

“The AFP is urging all Australians to be extra aware of the proliferation and sophistication of scams. Especially offers that appear too good to be true,” the police agency alerted.

Per the warning, Aussies under the age of 50 years have fallen trap to multiple cryptocurrency investment scams.

Almost half of all investment scam losses reported to police, have involved cryptos, noted Joint Policing Cybercrime Coordination Centre (JPC3).

Further, Australians lost AU$382 million ($259 million) to investment scams in 2023-24, the new data revealed. Among these, 47% of the investment scam losses had cryptocurrencies.

“Scams Awareness Week is a timely reminder for all members of the community to know the signs of an investment scam and how to avoid becoming a victim,” Assistant Commissioner Chin said.

Additionally, Chin noted, scammers promise high returns with little risk by using convincing marketing and new technology to lure customers.

“Scammers often use pressure tactics and different methodologies to lure victims into making poor investment decisions. Two common methods being pig butchering and using deepfake technology.”

AFP Partners With Banks and Exchanges to Help Scam Victims

Chin stressed that AFP, along with state and Commonwealth law enforcement partners want to “reassure the community” on their commitment to assist victims.

Furthermore, the AFP has partnered with some of the banks and crypto exchanges to “assist victims of investment scams.” The are also looking to recover money lost to fraudsters. Henceforth, the federal police has opened up a portal – cyber.gov.au – for crypto fraud victims to notify and report the con.

Chin also encouraged victims to speak-out about the nature of the fraud to friends, family and community.

“The more people who know about these unscrupulous criminals, the harder it will be for them to scam victims,” he added. “If an investment opportunity sounds too good to be true, then it probably is.”

As a part of the awareness initiative, the federal police has also released a video message highlighting how scammers operate.