The list is published in conjunction with Australia’s 2022 Scams Awareness Week. Australia’s market regulator has published a list of the “top ten techniques to recognise a crypto fraud” in response to an observed increase in crypto-related investment scams in 2018.
The Australian Securities and Investments Commission (ASIC) issued a public advisory statement as part of Frauds Awareness Week 2022, a campaign designed to educate Australians how to recognise all types of scams. The campaign runs from November 7 through November 11.
Australians have already lost more to “investment scams” in 2022 than they did in 2021, according to the Australian Securities and Investments Commission. ASIC Deputy Chair Sarah Court attributes the sharp increase in investment scams over the last two to three years to cryptocurrency.
“The main driver of the increase was cryptocurrency investment scams, where losses increased by 270%. The ACCC have advised that losses to crypto scams have increased further in 2022.”
“Given this concerning trend, we want to arm Australians with the information they need to protect themselves from scammers,” she added.
As part of the alert, ASIC outlined three sorts of bitcoin frauds. The first involves schemes in which the victim thinks he or she is investing in a real asset, but the cryptocurrency app, exchange, or website turns out to be fraudulent.
The second form of fraud includes the use of counterfeit crypto tokens to aid money laundering, while the third type of fraud involves the use of cryptocurrencies to make fraudulent payments.
ASIC says top signs of a crypto scam include “receiving an offer out of the blue,” “fake celebrity advertisements” and being asked by a “romantic partner you only know on-line” to send money in crypto.
Other warning signs include being requested to pay for financial services in cryptocurrency, being asked to pay extra money to access accounts, having investment gains withheld “for tax purposes,” or being given “free money” or “guaranteed investment returns.”
Additionally, the markets regulator said that it was usual for fraudsters to coerce victims into sending cryptocurrency to their website. ASIC also warned crypto investors not to utilise online applications that aren’t available on Apple Store or Google Play to avoid this risk.
ASIC also warned to be on the lookout if “strange tokens appear in your digital wallet.”
If defrauded, the Court strongly recommended victims not to “to send anymore money” to the perpetrator and to “block all contact” with them if their identity is known:
“Do not delay. Contact your bank or financial institution immediately to report the scam. Ask them to stop any transactions. Also, warn your family and friends so they can watch out for potential follow-up scams.”
The Australian Competition & Consumer Commission (ACCC) forecasted on November 7 that Australian-targeted scam losses would exceed $4 billion Australian dollars by 2022’s end.
Financial Services Minister Stephen Jones revealed on November 7 that the ACCC has secured $10 million in seed financing as part of its budget to create a National Anti-Scam Center to help the community in its battle against cybercriminals.
David Koch, presenter of the Australian morning programme Sunrise, has urged the Australian Competition and Consumer Commission (ACCC) to demand greater responsibility from social media sites such as Facebook, Instagram, and LinkedIn due to the prevalence of fraudulent information on their platforms.
