Australians lose $122 million to cryptocurrency scams, with younger victims now leading the way

Australians have reportedly lost at least AU$180 million (about $122 million) to cryptocurrency investment fraud over the past year.

Victims under 50 now account for about 60 per cent of scam reports, overtaking older Australians, who are generally considered more vulnerable to such schemes.

Cryptocurrency Investment Scams in Australia

The data, collected by the Australian Cyber ​​Security Centre (ACSC) from police reports via cyber.gov.au, shows total losses of AUD382 million (about $269 million) due to investment scams in the 2023-24 financial year, with 47% attributed to cryptocurrency.

Additionally, around 60 per cent of these reports came from Australians under the age of 50. AFP Assistant Commissioner Richard Chin said the data challenged the misconception that only older people were victims of fraud.

Chin noted that bad actors frequently employ pressure tactics and a variety of methods to deceive victims into making poor investment choices, with “pig butchering” schemes and deepfake technology being two common strategies.

He also advised the community to remain cautious and avoid feeling pressured into investing, while encouraging those with concerns to cease communication, seek independent financial advice and report any suspected investment scams to their financial institution or digital currency exchange, as well as alerting authorities via cyber.gov.au.

Chin said the AFP and its law enforcement partners are working closely with the banking industry and digital currency exchanges to assist victims of investment scams and attempt to recover funds lost to bad actors.

Chin also added:

“If an investment opportunity seems too good to be true, it probably is. Most scammers are motivated by financial gain, but stolen funds can be used to fund future criminal activities such as money laundering, illicit drug trafficking or human exploitation. We have seen cases where people are exploited and forced to work in horrific conditions so that organised crime groups can defraud them.”

Investment Scams in Australia

Earlier this month, the Australian Securities and Investments Commission (ASIC) revealed it had shut down 615 cryptocurrency investment scams in the first year of its efforts to crack down on fraudulent investment websites.

The Australian Government’s anti-scam initiative relies heavily on ASIC’s ability to disrupt investment scam websites, playing a vital role in combating fraud and protecting Australians.

Suspicious websites are referred to a specialist cybercrime detection company and, once evidence of malicious activity is confirmed, takedown is carried out, typically with the involvement of various government and industry partners. ASIC’s joint efforts with the National Anti-Scam Centre (NASC) have helped reduce these losses from $1.5 billion in 2022 to $1.3 billion in 2023.