Home Crypto Australians Lost Over $70M to Scam Crypto Investments in H1 2021

Australians Lost Over $70M to Scam Crypto Investments in H1 2021

Australians have continued to depend their losses as many have reportedly fallen sufferer to numerous funding scams.

According to a press release issued by the Australian Competition and Consumer Commission (ACCC), Investment scams reported to Scamwatch have price Australians over $70 million in the primary half of this 12 months. This determine surpassed the full reported losses for 2020, in accordance to the ACCC.

The rise in the recognition of cryptocurrencies stays probably the most prevalent avenue by way of which Australians get scammed. Of these, the scams involving Bitcoin is probably the most dominant.

“Investment scams are extra prevalent than ever, and scammers are capitalising on curiosity in cryptocurrency in explicit,” ACCC Deputy Chair Delia Rickard mentioned.

“More than half of the $70 million in losses have been to cryptocurrency, particularly by way of Bitcoin, and cryptocurrency scams have been additionally probably the most generally reported kind of funding rip-off, with 2,240 experiences.”

The proposition of funding alternatives with good incomes potentials has at all times been the attractive issue used to lure traders. Capital misplaced from Bitcoin scams topped $25.7 million this 12 months, compared to $17.8 million throughout 2020, representing a rise of 44 per cent.

“Be cautious of funding alternatives with low danger and excessive returns. If one thing sounds too good to be true, it most likely is,” Ms Rickard mentioned.

According to the report, losses incurred by way of Ponzi schemes and imposter bond scams have been additionally in style. According to the government-backed report platform, ScamWatch, roughly 58 and 400 experiences have been made for each scams routes in the primary half of the 12 months.

Fraudulent actions involving cryptocurrencies are ever prevalent. Beyond Australia, such frauds sometimes involve Initial Coin Offering scams, such because the case of AML BitCoin lobbyist Jack Abramoff. With the pseudo-anonymous nature of digital currencies, their use in cyber fraud is sure to maintain being a menace. Many safety corporations are constructing instruments to assist monitor and expose these illicit actions.

Image supply: Shutterstock

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