Australians Lose $122 Million To Crypto Scams In Past Year

According to Cointelegraph, Australians have lost $122 million (AUD 180 million) to cryptocurrency scams over the past 12 months, with the majority of victims being under the age of 50, as reported by the Australian Federal Police (AFP) on August 28. The AFP disclosed that a total of $269 million (AUD 382 million) was lost to investment scams during the same period, with approximately 47% of these losses being crypto-related. Data from the Australian government website Scamwatch indicates that most scams are initiated through text messages or emails. AFP Assistant Commissioner Richard Chin highlighted that around 60% of the victims were under the age of 50, surpassing older Australians who are typically perceived as more vulnerable to scams. The AFP identified that modern technology played a significant role in these scams, with 'pig butchering' and 'deepfakes' being the most prevalent methods. Pig butchering involves scammers establishing personal relationships with their victims via social media or other platforms before persuading them to invest in fraudulent schemes. Deepfakes, on the other hand, utilize artificial intelligence (AI) to create convincing audio and video of celebrities and trusted public figures to promote fake investment opportunities. Notably, the voice and likeness of Tesla CEO Elon Musk are frequently used by AI crypto scammers. Chin emphasized that the AFP's data likely represents only a fraction of the actual number of victims, as many individuals may be unaware they have been scammed or are too embarrassed to report the crime. He advised caution, stating, 'If an investment opportunity sounds too good to be true, then it probably is.' He also noted that financial gain is the primary motivation for most scammers, but the stolen funds could potentially be used to finance other criminal activities such as money laundering, drug trafficking, or human exploitation. The Australian Government website Scamwatch also reports that investment scams remain the most common way Australians are losing money, with losses amounting to more than $68 million (AUD 100 million) in 2024 so far. However, unlike the AFP data, Scamwatch indicates that the majority of victims are over the age of 50.