Australians lost $148.3 million (AUD$221.3 million) to investment scams using cryptocurrency as a payment method in 2022, an increase of 162.4% from 2021.
Based on scam activity on April 17 report country's consumer regulator, the Australian Competition and Consumer Commission (ACCC), there were 3,910 crypto scam incident reports in total and the average Australian victim was stripped naked from $37,900 (AUD$56,600).
The $148.3 million figure represents 7.1% of the total $2.08 billion (A$3.1 billion) in reported scams in Australia by 2022.
Our latest Targeting Scams report has revealed that Australians lost a record $3.1bn to scams in 2022, as government, law enforcement and the private sector seek to enhance collaborative efforts to support the community in the fight against scams. https://t.co/3f9C3Uoltv pic.twitter.com/OGj6TkygnK
โ ACCC (@acccgovau) April 16, 2023
Wire transfers remained the largest scam payment method with nearly 13,100 reports totaling $141 million, $7.3 million less than crypto payments.
Wire transfer payment scams averaged around $10,700 (AUD$16,000) per incident, meaning crypto scammers were able to swindle 250% more value from each victim.
The data showed that cryptocurrency scammers mostly contacted victims through social media and networking apps, while bank payment scammers communicated more frequently via phone and email.
On a April 17 statement, ACCC Vice President Catriona Lowe partly attributed the rise in scams to new technologies that make it easier to โlure and fool victimsโ with increasingly โsophisticatedโ tactics:
โWe have seen scare new tactics emerge that make scams incredibly difficult to detect. This includes everything from impersonating official phone numbers, email addresses, and websites of legitimate organizations to fraudulent text messages appearing in the same conversation thread as genuine messages.โ
โThis means that now more than ever, anyone can fall victim to a scam,โ he added.
While the numbers are "alarming," Lowe stressed that the "real cost" of the damage is not yet included in the price:
"Australians lost more money to scams than ever before in 2022, but the true cost of scams is much more than a dollar figure, as they also cause emotional distress to victims, their families and businesses."
Lowe explained that the Australian government, law enforcement and the private sector need to strengthen ties to "fight" scams more effectively and reduce the numbers.
Related: Australians are top targets for Israel's crypto scam syndicate
According to data from the ACCC's Scamwatch scam database, the average victim of investment scams in Australia is a 65-year-old man who will be contacted on social media or respond to a fraudulent advertisement.
They will probably be involved in the scam for "several months" before they realize they have been scammed.
Impostor bond offerings, initial public offerings (IPOs), relationship or pig slaughter schemes and money recovery services are among the most common investment scams reported.
The ACCC said in its report that losses from scams "are much higher" than reported, as about 30% of scam victims do not report it to anyone, while only 13% of victims report the incident. to Scamwatch.
ACCC's Scamwatch, ReportCyber, Australian Financial Crimes Exchange (AFCX) and other agencies compiled data for the report.
Magazine: Unstable currencies: decouplings, bank runs and other risks loom
Post navigation
Previous Post
Tax Tips: Filing your taxes and cryptocurrency
