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Fraudulent cryptocurrency investments cost Australians over $25 million.

The total losses from Bitcoin-related investment frauds have now surpassed $18.5 million. Therefore, it is up 44 per cent from the total losses of approximately $12.8 million in 2020.

According to Scamwatch data, investment scams in Australia robbed investors of more than 70 million Australian dollars ($50.5 million) during the first six months of 2021. Additionally, crypto fraud accounting for more than half of the losses.

The ACC Report

As per the Australian Competition and Consumer Commission (ACCC), Scamwatch statistics show a 53.4 per cent increase in investment hoax reports. This includes a total value of $101 million estimated that by the end of the year.

According to ACCC vice-chair Delia Rickard, 2,240 of the 4,763 comments were lodged in 2021. They were in connection with cryptocurrency frauds, with Bitcoin accounting for most of them (BTC).

Scammers, according to Rickard, entice investors to use fraudulent trading systems with celebrity affiliations that claim large profits. Moreover, the trading platforms first allow investors to withdraw a portion of their gains using the holdings of other victims. However, the scammer eventually prevents naïve investors from withdrawing their funds.

“Be wary of investment opportunities with low risk and high returns. If something sounds too good to be true, it probably is,” Delia noted.

The Different Forms of Scams

Ponzi scams, impostor bond scams, and romance baiting scams were among the other forms of scams that afflicted Australian investors.

The Australian Securities and Investments Commission (ASIC) issued an advisory to Australian citizens on Wednesday, urging them to refrain from investing in cryptocurrency through unregistered businesses.

Investors should choose financial organisations with an Australian Financial Services licence, according to the regulator. As per the complaints received from investors, the ASIC noted that most of the losses related to cryptocurrency investments were because of “excessive leverage, platform outages, or unfair liquidations.”

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.