- Investors in Australia have lost a whopping $25 million due to crypto scams.
- When compared to the data of 2020, a 44 percent surge in crypto scams has been seen.
- The total investment frauds in the nation have been expected to reach $101 million from $70 million.
Cryptocurrency scams and frauds have become quite common now as many governments lack a crystal clear legal infrastructure for crypto investors and exchanges to follow. The shortcomings of the legal framework are being exploited by scammers and hackers who exist to create a dent in the pockets of investors. A recent study of Scamwatch showed the increase in scams in Australia.
The research by Scamwatch revealed that out of all the people investing their money in cryptocurrencies, nearly 2,240 cases of fraud had been reported in the year 2021 until now. It is expected that this number will keep growing as the year is nearing its closure. The combined cases of investment frauds, including crypto scams, contribute to a whopping fraud of 4,763 cases.
Crypto scams involve celebrities to build trust
The deputy chair of the Australian Competition and Consumer Commission, Delia Rickard, stated that a common method used by crypto scammers is to involve celebrities to do their campaigning. By paying celebrities to support their trading platforms or crypto schemes on social media platforms, scammers have robbed Australians of $25 million.
Delia Rickard also stated that sometimes, these crypto trading platforms promise great returns, eventually trapping users. Initially, some profit is allowed to be withdrawn from the platform using the wallets of other users. After the user starts trusting the platform, the withdrawal is paused, and money is snatched away from the user.
Citizens asked to invest using licensed platforms
The authorities have reminded Australians to never invest in schemes that seem too good to be true and never fall for exchanges that do not have a license issued by the Australian regulatory authorities.
Crypto scams, Ponzi schemes, bond frauds, and other investment-related frauds have surged by more than fifty percent, as reported by the research. The financial value lost to these scams is expected to break a 100 million USD by the end of the year.