Australian Citizens Suffer Record Losses Due to Cryptocurrency Frauds and Scams

04/17/2023 13:32 • Daily Digest • 59 views

According to a report released by the Australian Competition and Consumer Council (ACCC), Australian citizens lost $148.4 million in cryptocurrency due to fraud in 2022, an increase of 162.4% month on month. Australian citizens suffered a record $2.03 billion in losses due to various scams in 2022, with investment fraud accounting for over 66% of all financial losses, up from 55% in 2021.

Australian citizens lost nearly $150 million in cryptocurrency due to fraud in 2022

Introduction

The Australian Competition and Consumer Council (ACCC) recently released a report which reveals that Australian citizens’ losses due to cryptocurrency fraud increased by 162.4% in 2022. Additionally, citizens suffered a record-breaking $2.03 billion in losses due to various scams, with investment fraud accounting for over 66% of all financial losses.

What is Cryptocurrency Fraud?

Cryptocurrency fraud is a type of scam that involves deceiving individuals into investing in fraudulent cryptocurrency schemes. These schemes can take the form of pyramid schemes, Ponzi schemes, and fake initial coin offerings (ICOs).

How Cryptocurrency Frauds Occur?

The most common way to perpetuate a cryptocurrency fraud is to use unsolicited calls, emails, or social media messages to introduce the investor to the scheme. Once the investor shows interest, the perpetrator often uses high-pressure tactics to influence them to invest more and more money. They may also offer promises of high returns in a short period of time.

Australian Citizens’ Increasing Losses Due to Cryptocurrency Frauds

Although Australia’s total cryptocurrency fraud loss for 2022 was $148.4 million, this represents an alarming increase of 162.4% from the previous year. This increase highlights the significant growth of crypto scams in recent years that threaten Australian investors.

Investment Fraud and Other Scams

Investment fraud accounted for over 66% of all Australian financial losses in 2022. However, it’s only one of the many types of scams that Australian citizens fall victim to.

Other Types of Scams

Other kinds of scams that had significant losses in Australia include online shopping, phishing scams, and dating & romance scams. The ACCC report shows that the online shopping loss amounted to $65 million, phishing scams caused a loss of $43 million, and dating & romance scams resulted in a loss of $52 million.

Conclusion

Australian citizens’ losses due to cryptocurrency fraud and other scams are on the rise, and it’s important to be aware of the tactics used by scammers. Unsuspecting investors are often lured in by promises of quick, easy returns, only to be left with massive financial losses. Always do your research and seek professional advice before investing in any scheme.

FAQs

1. How can I protect myself from cryptocurrency fraud?
Ans: Always research any investment opportunity before investing money, stay alert for signs of potential scams, and seek professional advice before making any investment decisions.
2. Why are investment frauds so common in Australia?
Ans: Investment frauds are common in Australia because they often come with the promise of high returns with low risk. Investors should always remember that if something sounds too good to be true, it probably is.
3. What should I do if I suspect I’ve been the victim of cryptocurrency fraud?
Ans: If you believe you’ve been the victim of cryptocurrency fraud or any other scam, report it to the police and the Australian Securities and Investments Commission (ASIC) immediately.

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