ASIC warns against rising crypto scams in Australia amid COVID-19

ZebPay in India

The Australian Securities and Investment Commission (ASIC) has warned against the increasing rate of frauds, particularly crypto scams in Australia. The regulator noted that these fraudulent activities has been surging in the country, following the outbreak of the coronavirus few months ago. 

Crypto scams in Australia surge amid coronavirus pandemic

In a report on Wednesday, Australia’s corporate regulator indicated that scammers took advantage of these difficult times amid COVID-19. This resulted in a sharp increase in investment scams, especially crypto scams in Australia. Within the third and fifth months of this year, investment scams in the country rose by 20 percent, compared to 2019.

ASIC’s concern about the increasing fraudulent activities is mostly directed towards crypto scams in Australia. The regulator mentioned in the report that recorded more scam reports on crypto-assets, investments, including from romance websites. 

ASIC shows more concern about fake crypto investments

Having blamed the current health crisis as the major cause of the investments and crypto scams in Australia, the regulator said the attackers remodified their strategy to scam unsuspecting Australians. According to Warren Day, an executive at ASIC, the scammers employed age-old strategies for their illicit activity, however in a more sophisticated way.

Warren added:

ASIC is particularly concerned about the risk to consumers and investors losing money when buying into fake crypto-assets. Most crypto-asset investment opportunities reported to ASIC appear to be outright scams and there is no actual underlying investment.

Although it is difficult to recover lost funds, especially if the perpetrators are outside the country, the regulator gave out helpful tips to spot fake investment businesses. In addition to explaining the different forms of finance-related scams, ASIC encouraged the public to reports case on scams.

Ibiam Wayas

Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

Related News

Hot Stories

Ethereum price analysis: ETH fails to break the $1,300 level after a period of consolidation
LOOM Price Prediction 2023-2031: Is the Loom Network a Good Investment?
ChainLink price analysis: LINK obtains fully bearish momentum at $7.3
Electroneum Price Prediction 2023-2031: Is ETN a Good Investment?
Bitcoin price analysis: Bitcoin reclaims $17,000 as bearish divergence looms

Follow Us

Industry News

Are crypto miners losing faith in Bitcoin? Over 10K BTC dumped
Coin Signals ordered to return funds to victims
Weekly crypto price analysis 4th Dec: BTC, ETH, XRP, BNB, ADA, DOGE
DeFi predictions 2023: How will crypto and blockchain evolve? 
Avalanche partners with Alibaba Cloud to launch new validators

Add Your Heading Text Here