Australians on track to lose $101m in crypto scams this year

Australians have lost more than AU$70m in fraudulent crypto investment, or roughly $50.5m US dollars during the first half of the year.

An estimated 50% of all of that has been due to crypto scams based on data released by Scamwatch.

The Australian Competition and Consumer Commission (ACCC) has also noted an increase in the number of crypto scams, with Scamwatch noting a 53.4% jump in the overall scam-related reports.

According to ACCC deputy chair Delia Rickard, there were 2,240 complaints during the period with the potential losses reaching some $101m by the end of the year.

The most common form of scam is when fraudsters lure people to private platforms and allow them to deposit as well as withdraw some of their earnings.

Often, a fake celebrity profile or endorsement is created to galvanize people into acting. Once consumers are encouraged by the result, they end up investing even more, and at this point the trap shuts, locking the investors out of their funds.

Bitcoin-related scams seem to be on the rise with $18.5m lost in the first six months of the year as opposed to $12.8m for the entire 2020.

Ponzi scams and imposter bond scams, as well as romance baiting scams are also popular and the Australian Securities and Investments Commission has been forced to issue a public statement urging citizens to stop pursuing investment opportunities through unlicensed entities.

It’s best to always stick to regulated crypto operators, whether this is for entertainment or investment. Australians may have access to some great crypto casinos. Some top choices include Bitcasino, 1xBit and FortuneJack.


Updated: 08/25/2021 — 13:00