Blockchain analytics firm TRM Labs has joined forces with the Australian cryptocurrency exchange Swyftx to combat cryptocurrency scams in the nation. The collaboration announced, aims to enhance security and raise awareness among Australian crypto users during the Australian government’s Scam Awareness Week, running from November 27th to December 1st.
This initiative offers a unique incentive, where crypto users who activate two-factor authentication (2FA) on their cryptocurrency accounts will receive AUD $10 worth of Bitcoin.
Boosting security with Two-Factor authentication
Two-factor authentication (2FA) is a widely recognized security process that requires users to provide two forms of identification to access their accounts. Unlike single-factor authentication, which relies solely on a password or passcode, 2FA provides a higher level of security. By encouraging crypto users to adopt 2FA, TRM Labs and Swyftx aim to reduce the risk of unauthorized access and prevent scams in the crypto space.
Addressing the crypto regulation landscape in Australia
The Australian government has been actively tightening its crypto regulation policies, particularly in the wake of the FTX collapse. In 2023, regulatory authorities in Australia have taken action against several crypto-related companies, including Block Earner and eToro. Additionally, local banks have imposed restrictions on crypto payments, citing concerns over scams.
Notably, the Commonwealth Bank (CBA) introduced partial restrictions, and Binance Australia temporarily halted deposits and withdrawals by bank transfer due to a decision made by a third-party payment service provider.
However, it appears that a compromise has been reached between the Australian government and the blockchain industry. Collaborative efforts, such as the TRM Labs and Swyftx partnership, are being established to address the challenges associated with crypto scams and fraud in the country.
The escalating crypto scam problem in Australia
Crypto scams have been on the rise in Australia, with alarming statistics indicating the scale of the issue. In 2022, Australians reported cryptocurrency losses totaling AUD 221 million (USD 146 million), marking a staggering 162.4% increase compared to the previous year. These losses highlight the urgent need for enhanced security measures and increased public awareness regarding cryptocurrency scams.
Swyftx’s contribution to combating scams
Swyftx, one of Australia’s prominent cryptocurrency exchanges, has taken proactive steps to protect its customers from falling victim to scams. This year alone, Swyftx prevented AUD 3 million in customer funds from being siphoned off by scammers.
As part of the TRM Labs partnership, Swyftx will reward the initial 2,000 customers who enable 2FA on their accounts and successfully complete a course co-developed with TRM Labs. These users will receive AUD $10 worth of Bitcoin, incentivizing them to bolster their account security.
In addition to encouraging 2FA adoption, the TRM Labs and Swyftx partnership also promotes the reporting of suspected fraud. Users are encouraged to report such incidents on chainabuse.com, a free scam-reporting website operated by TRM Labs. This initiative aims to create a safer crypto environment by allowing users to verify the legitimacy of addresses before engaging with them.
