Australians Lost Almost $100 Million in 2021 to Crypto Investment Scams
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AustraliansLost Almost $100 Million in 2021 to Crypto Investment Scams
Aussies lost more than A$2 billion to scams in 2021,including losses of A$84 million due to scammers seeking payment with cryptocurrency,according to an AustralianCompetition and Consumer Commission (ACCC) report.
The ACCC’s annual report on scams published on July 4 foundthat investment scams increased by 135 percent in 2021 and caused the mostfinancial harm, resulting in A$701 million lost by Australians.This spike wasdriven specifically by crypto investment scams, which led to Aussie investorsreporting losses of A$99 million – 270 percent higher than the previous year.
The report tallies losses based on consumer reports sharedwith Scamwatch,ReportCyber, and 12 financial institutions and government agencies.fake investment andcrypto trading platforms, which sometimes mimic legitimate, well-known websites;salesof fake crypto wallets;trickingpeople into revealing their seed phrase for an existing wallet; and offers to “help”people get set up on a crypto platform by remotely accessing their computer.
Scammers typically contacted victims by phone, or throughsocial media and websites. Crypto investment scams affected all age groups butpeople aged 65 years and over lost the most money (A$26.5 million).
While bank transfers remained the most common way scammersrequested payment from victims in 2021, requests for cryptocurrency increaseddramatically – up 216 percent. Earlier this year, the ACCC revealed crypto hadsurpassed bank transfers as scammers’ preferred payment method.
Rickard also expressed her hope that government effortstowards licensing digital currency exchanges and custody requirements forcrypto assets would slow the growth of crypto scams. Consumer groups have alsocalled for Australia’s new Labor government to protect crypto investors through morestringent regulation.