Australians Lose $122 Million to Crypto Scams in 12 Months

Highlights:

• Australians have lost $122 million to crypto scams in the last 12 months, with most victims now under 50 years old.
• The AFP identifies pig butchering and deepfakes as primary tactics used by scammers to deceive victims.
• The AFP collaborates with police, banks, and digital exchanges to combat the rising trend of crypto scams.

Australians have lost $122 million to crypto scams in the past year, according to a statement from the Australian Federal Police (AFP). The report, released on August 28, highlights that almost half of the total $269 million lost to investment scams during the period involved cryptocurrency.

Australians reported losing at least $180 million of cryptocurrency in investment scams in just 12 months, with victims now more likely to be under the age of 50 years. https://t.co/H1PFHtop4q

— AFP (@AusFedPolice) August 27, 2024

Rising Trend Among Younger Australians

AFP Assistant Commissioner Richard Chin revealed that about 60% of crypto scam victims were under the age of 50. This marked a shift from the older demographic that has traditionally been more vulnerable to scams. Chin emphasized, “It is a misnomer that only older people fall victim to these scams.”

The AFP’s data suggests that younger Australians are becoming prime targets for scammers. Chin noted that advanced tactics like “pig butchering” and deepfakes are commonly used by fraudsters to trick their victims.

He added:

Scammers lure people with promises of high returns and minimal risk, using persuasive marketing and innovative technology to make the investment seem irresistible

Common Scams: Pig Butchering and Deepfakes

Pig butchering is a tactic where scammers build personal relationships with their victims over weeks or months via social media or messaging apps. The scammers then persuade victims to invest in fake platforms that mimic legitimate trading or cryptocurrency sites. Once the scammers have extracted as much money as possible, they disappear with all the funds.

Deepfake technology, another prevalent scam method, uses artificial intelligence to create realistic audio and video impersonations of celebrities or trusted public figures. These deepfakes are often used in promotional videos, ads, or fake news articles to lure victims into fake investment schemes. The AFP noted that scammers frequently use the likeness of well-known figures such as Tesla CEO Elon Musk to give their schemes credibility.

There are currently 18k people watching a fake #Bitcoin Conference live stream 👀

It has an AI generated version of Elon saying if you send Bitcoin to a scam address you will get double back

It's not convincing, but it's a good reminder to keep your wits about you. Stay safe… pic.twitter.com/gXi4RgPu21

— The Bitcoin Way (@Thebitcoinway_) July 27, 2024

The AFP also reported that many victims are unaware they have been scammed or feel too embarrassed to report the crime. “If an investment opportunity sounds too good to be true, then it probably is,” warned Chin.

Coordinated Efforts to Combat Scams

The AFP, along with state and territory police forces, has launched a national campaign for Scams Awareness Week to educate the public about the latest scam tactics. The initiative, which runs from August 26 to 30, encourages Australians to “share a story, stop a scam.” Chin stressed that the AFP and its partners are committed to helping victims and disrupting scammers.

He stated:

We are collaborating closely with the banking sector and digital currency platforms to recover funds lost to scammers.

Data from Scamwatch, an Australian Government website, showed that investment scams are the most common way Australians lose money, with more than $68 million reported in losses for 2024 alone. However, Scamwatch data contrasts with the AFP’s findings, revealing that scammers more frequently target people over 50.

In conclusion, the AFP and its partners are urging Australians to exercise caution when approached with investment opportunities, particularly online. They recommend consulting independent financial advisors and reporting any suspicious activity to police through cyber.gov.au.

Chin said:

The more people who know about these unscrupulous criminals, the harder it will be for them to succeed.