Australian Crypto Scams Reports Up by 200% in 2018

A new report published May 1 by Australia’s financial watchdog, the Australian Competition and Consumer Commission (ACCC), reveals that reported cryptocurrency scams in the country down under have risen 200% from the previous year.

Reported Losses of AUD $6.1 Million to Crypto Scams

Per the report, there were 674 cases in which victims of crypto scams paid scammers in total up to AUD $6.1 million (USD $4.3 million) in 2018. This figure is nearly 200% higher than it was in 2017, in which a reported AUD $2.1 million (USD $1.48 million) was lost to crypto scams.

The figures presented in the ACCC’s report are solely from crypto scammers and not hackers.

According to the ACCC, the scammers generally tricked online consumers into buying virtual currencies through fake platforms. When the duped consumers attempted to withdraw their cryptocurrency funds, the scammer would then make excuses or be unavailable for contact.

Another common crypto scam led unsuspecting investors to deposit cryptocurrency at fake or fraudulent investment websites for the trading of forex, commodities, binary options, or other tradable products.

And in some cases, scammers convinced people to go to a Bitcoin ATM and convert fiat currency into Bitcoin, and then transfer it to them for whatever reason the scammer came up with.

All in all, while the cryptocurrency industry may be maturing, the number of crypto scams appear to be growing, and will continue to prey on unsuspecting consumers unfamiliar with the space. Even the recorded losses presented in the ACCC’s report are likely just the tip of the iceberg, as not everybody reports scams to a government agency.

Have you ever been involved in a cryptocurrency scam? What can be done to help protect unsuspecting consumers? Let us know what you think in the comment section below.