Australians Lose $122M to Crypto Scams; Most Victims Under 50

Australians have lost over AUD $180 million (around $122 million) to crypto investment scams in the past year.

According to the Australian Federal Police, young people are the main targets as the fraudsters use more advanced tactics.

The federal law enforcement agency revealed this in an August 28 press release in which it issued a public warning to Australians in collaboration with state and territory police. They warned the public to stay alert, particularly when presented with investment opportunities that appear too good to be true.

The AFP’s data shows that nearly half of all investment scam losses reported to police involved cryptocurrencies, with 60% of victims now under 50. The agency emphasized deceptive tactics like “pig butchering,” where scammers establish long-term relationships with victims before persuading them to invest, and the use of deepfake technology to impersonate trusted individuals.

AFP Assistant Commissioner Richard Chin commented on the incident:

“If an investment opportunity sounds too good to be true, then it probably is, while financial gain is the primary motive for most scammers, stolen funds could also be used to finance future criminal activities, including money laundering, drug trafficking, or human exploitation.”

The AFP also reported that Australians lost over AUD$382 million (nearly $260 million) to investment scams during the 2023-24 financial year, with almost half of these losses linked to cryptocurrency.

Meanwhile, Australia’s financial markets watchdog has also issued a similar warning about the evolving tactics used by fraudsters who employed artificial intelligence to steal cryptocurrencies. In an August 19 statement, the Australian Securities and Investments Commission (ASIC) reported that since July 2023, it had taken down over 5,530 fake investment platforms, 1,065 phishing links, and 615 cryptocurrency scams. ASIC Deputy Chair Sarah Court noted that an average of 20 scam websites were removed daily, with investment scams causing the most significant financial losses for Australians, totalling $1.3 billion in 2023.

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