Australia lost $122 million to crypto fraud in last 12 months: AFP
Australians lost A$180 million ($122 million) to crypto scams in the past 12 months, with most victims under the age of 50, according to a new report from the country's federal police.
In a statement on August 28, the Australian Federal Police said a total of A$269 million ($382 million) was lost in investment fraud last year.
According to information from the Australian Government website Scamwatch, most scams are initiated by text message or email. Source: Scamwatch
AFP Assistant Commissioner Richard Chin said another key finding from all the reports was the age of the victims. Overall, 60% are under 50, ahead of older Australians who are seen as more vulnerable to fraud.
The methods used are mainly based on modern technology, killing pork and deep fakes are the two most common types of fraud discovered by AFP.
“Scammers use persuasive marketing and new technology to promise high returns with little risk to make the investment not so good,” Chin said.
Porking involves the fraudsters building a personal relationship with their victims through social media or other platforms before encouraging them to invest in fraudulent schemes.
Related: Australian regulator says 58% of crypto ads on Facebook are scams
Deepfakes use artificial intelligence to generate audio and video, often of celebrities and other trusted public figures, to promote fake investment schemes. Tesla CEO Elon Musk's voice and likeness are among the most popular choices for AI crypto hackers.
Source: The Bitcoin Way
Chin said the AFP data is probably only the tip of the iceberg, with many people falling victim to fraud who either don't know they've been scammed or are too embarrassed to report the crime.
“If an investment opportunity seems too good to be true, it probably is,” he said.
“Most fraudsters are motivated by financial gain, but stolen funds can be used to cover future criminal activities such as money laundering, drug trafficking or human exploitation.”
Australian government website Scamwatch also shows investment scams are still the most popular way Australians are losing money, with reports of losses totaling more than A$100 million ($68 million) by 2024.
However, according to AFP data, Scamwatch shows that the over-50 age group is the most likely victim of scams.
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