Simon Callaghan, the newly appointed CEO of Blockchain Australia, has called for collaboration between Australia’s banks, government, and the cryptocurrency sector to combat the rising threat of cryptocurrency fraud.
Speaking on June 30, 2023, during the closing day of Australian Blockchain Week in Melbourne, Callaghan announced that the organization’s top priority would be preventing fraud involving cryptocurrencies in addition to its ongoing initiatives.
In his address, Callaghan emphasized the crucial need to protect consumers and highlighted the importance of working closely with the banking industry and the government. He pointed out that cryptocurrency fraud often originates from social media or telecommunications channels, making it essential for law enforcement efforts to begin from these platforms. Cryptocurrency itself might only serve as an exit point or a minor component in the scam’s lifecycle, with the actual scam taking place elsewhere.
As the primary industry association for blockchain in Australia, Blockchain Australia represents 111 blockchain-related businesses, playing a significant role in advocating for the industry’s interests and promoting its growth. The association recently revealed its plan to analyze scam data collected from cryptocurrency exchanges and use this data to establish best practices for preventing scams and fraud in the cryptocurrency sector.
Similarly, the Australian Competition and Consumer Commission (ACCC), the nation’s consumer protection agency, has also taken proactive measures to address the issue. On July 1, 2023, the ACCC is set to launch its National Anti-Scam Center (NASC), which will act as a collaborative hub bringing together expertise and resources from various stakeholders to effectively counter scammers contacting Australians. The NASC aims to prevent scams and increase consumer awareness of fraudulent activities.
Also, two major Australian banks have taken actions to mitigate the increasing prevalence of cryptocurrency-related scams in the country. Commonwealth Bank announced new measures to curb cryptocurrency scams by declining or holding certain payments to exchanges and introducing $10,000 limits per calendar month.
Westpac, another leading Australian bank, initiated the first stage of a scam-prevention tool experiment to combat cryptocurrency-related fraud. The bank aims to utilize various instruments and security measures to prevent losses and reduce risks associated with cryptocurrency and investment scams.
Westpac reported that over a third of fraud cases involve direct payments to cryptocurrency exchanges, making them difficult to trace. Additionally, almost 50% of client losses resulting from fraudulent activities are attributed to investment schemes. These alarming statistics underscore the significance of the banks’ efforts to develop effective measures to safeguard their customers’ assets and preserve the integrity of the financial system.
Callaghan’s call for a unified approach to protecting consumers and combating cryptocurrency fraud in Australia aligns with the initiatives from the banks, the government, and the cryptocurrency sector (as well as the ACCC’s and Blockchain Australia’s initiatives). The country hopes to serve as a model for other nations facing similar challenges in the global fight against such scams.
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