A hidden epidemic is unfolding in Australia as millions are falling victim to a new wave of crypto scams.
As per the latest crypto news, Australians have fallen prey to crypto scams on an alarming scale, with losses reaching a staggering 180 million Australian dollars ($122 million) in the past year.
A new report from the Australian Federal Police (AFP) highlights that most victims were under 50 years old, shattering the stereotype that older individuals are more vulnerable to scams.
The AFP’s Aug. 28 statement also revealed that total losses from investment scams amounted to $269 million ($382 million AUD) over the past year, with nearly half of these scams involving cryptocurrencies.
Interestingly, around 60% of scam victims were under 50, marking a shift in the age demographics typically associated with financial fraud. The rise of modern technology has facilitated sophisticated scams, with “pig butchering” and deepfakes emerging as the most common tactics.
In pig butchering scams, fraudsters build trust with victims through social media or other platforms, ultimately convincing them to invest in bogus schemes. Deepfakes, on the other hand, employ AI-generated audio and video, often mimicking well-known figures like Tesla CEO Elon Musk, to lure unsuspecting investors into fake opportunities.
While these figures are concerning, AFP Assistant Commissioner Richard Chin warns that they may only represent a fraction of the actual losses, as many victims may be unaware they’ve been scammed or too embarrassed to come forward.
The government’s Scamwatch website underscores the ongoing threat, reporting that Aussies have lost more than $100 million AUD ($68 million) to investment scams in 2024 alone. Interestingly, Scamwatch data contrasts with AFP findings, indicating that older Australians still make up the majority of scam victims.
The takeaway?
If an investment opportunity sounds too good to be true, it likely is, and the consequences of falling for these scams could be funding further criminal activities such as money laundering, drug trafficking, or human exploitation.
