Scam Crypto Investments cost Australians around $70 million in H1 2021

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Many Australians have allegedly been victims of different investment frauds, and many have continued to tally their losses.

Investment scams reported to Scamwatch cost Australians over $70 million in the first half of this year, according to the Australian Competition and Consumer Commission (ACCC). According to the ACCC, this sum exceeds the total documented losses for 2020.

The surge in popularity of cryptocurrency is still the most common way for Australians to be defrauded. Scams involving Bitcoin are the most common of them.

“Investment scams are more prevalent than ever, and scammers are capitalising on interest in cryptocurrency in particular,” ACCC Deputy Chair Delia Rickard said.

“More than half of the $70 million in losses were to cryptocurrency, especially through Bitcoin, and cryptocurrency scams were also the most commonly reported type of investment scam, with 2,240 reports.”

The promise of high-yielding investment possibilities has long been an appealing feature used to entice investors. But, unfortunately, the amount of money lost to Bitcoin scams this year was $25.7 million, up from $17.8 million in 2020, a 44 percent increase.

According to Ms. Rickard, be wary of investment opportunities with little risk and high returns. If something seems too good to be true, it almost certainly is.

According to the report, losses from Ponzi schemes and imposter bond scams were also frequent. According to the government-backed complaint web ScamWatch, approximately 58 and 400 reports were made for both fraud methods in the first half of the year.

The use of cryptocurrency for fraudulent purposes is on the rise. In countries other than Australia, initial coin offering (ICO) scams are common, as seen in the example of AML BitCoin lobbyist Jack Abramoff. Because of the pseudo-anonymous character of digital currencies, their usage in cyber fraud will undoubtedly continue to be a problem. As a result, many security companies are developing technologies to track and disclose these illegal actions.

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