In a new update, Australian market participants have suffered considerable losses via crypto fraud drains. The Australian Federal Police (AFP) recently released a report highlighting crypto losses among the nation’s traders.
The statement revealed an estimated 180 million Australian dollars ($122M) went down the drain via crypto frauds within a year. Interestingly, the report had an unusual angle; the scam victims over the year interval are mainly under 50 years old. Considering that older investors are more vulnerable to scams, it becomes a distinct finding if younger generations suffer more losses.
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
AFP’s Crypto Fraud Drains Report
To mark Scam Awareness Week in Australia, the AFP, in partnership with state and tertiary police, has sourced individual fraud drain stories. The collaborative forces summarized citizens’ unfortunate encounters with scammers to champion a scam awareness campaign among the country’s inhabitants.
Commenting on the awareness program, Richard Chin, AFP’s Assistant Commissioner, remarked, “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.”
Aside from revealing that Aussies under 50 made up 60% of the overall scam victim population, the report also disclosed that 382 million Australian Dollars went down the drain in the past year. Interestingly, about 47% of the total losses from investment scams involved cryptocurrencies.
Trendy Scam Techniques, According to the AFP
Describing the trending scam techniques employed by the fraudsters, the AFP stated, “We want to educate Australians about some common tactics these criminals are using to deceive Australians every day into handing over their hard-earned money.”
Among the highlighted scamming methods, “Pig Butchering” appeared to top the list. Per the AFP, it entails spending a lot of time building and winning unsuspecting investors’ trust. Over time, the scammer will encourage the victim to invest in a make-believe platform that eventually becomes a scam.
Deepfakes are also among the most common scam techniques. It involves applying Artificial Intelligence (AI) models to create ads, videos, or images of reputable figures. The fake clips promote fraudulent platforms, which unsuspecting investors may confidently delve into.
