According to the Australian regulator, in the first half of 2021, investor losses from bitcoin fraud reached 25.7 million AUD, compared to 17.8 million AUD for the entire 2020.
The Australian Competition and Consumer Protection Commission (ACCC) reported that in the first half of 2021, local residents lost more than 70 million Australian dollars on investments in various pyramids, as well as in fraudulent investment and cryptocurrency projects. This figure significantly exceeds the figures for the entire last year, and by the end of the year, investors’ losses may amount to 140 million AUD.
According to Scamwatch, complaints about cryptocurrency and investment fraud increased by 53.4% from 3,104 in the first half of 2020 to 4,763 in 2021. In addition to stealing money, attackers often steal the personal data of victims, using this information in the future to commit illegal actions.
Usually scammers claim that they have developed a special trading scheme that brings high profits. Many people use fake celebrity reviews to gain the trust of potential investors. As a rule, at first the victims can make a small profit, but when making large amounts, the scammers report problems with the withdrawal of funds, and then completely interrupt the contact with the user. Often, criminals pose as legitimate companies, offering users to purchase fake corporate bonds or forcing cryptocurrency investment services on them.
To complicate matters, offenders use prospectuses of companies registered with the Australian Securities and Investment Commission (ASIC) and link to their websites. In this case, fraudsters substitute their contact information and bank details. To lure more gullible people, scammers use ads on social media sites and also post fake apps in Google and Apple stores.
“Investment fraud is spreading fast. Scammers are especially interested in cryptocurrencies. We have already received 2,240 bitcoin investment complaints. Beware of projects that promise zero risk and high returns. If something sounds too good to be true, be careful, ”said ACCC Vice Chair Delia Rickard.
She advised Australian citizens not to invest in cryptocurrencies through organizations that are not licensed by regulators. This month, the industry organization Blockchain Australia accused the country’s government of being reluctant to develop regulations to regulate blockchain and cryptocurrencies, as it is used to seeing the industry as the epicenter of attackers.
