Australians Misplaced Over $70M to Rip-off Crypto Investments in H1 2021

Australians have continued to rely their losses as many have reportedly fallen sufferer to numerous funding scams.

In keeping with a press release issued by the Australian Competitors and Shopper Fee (ACCC), Funding scams reported to Scamwatch have value Australians over $70 million within the first half of this 12 months. This determine surpassed the overall reported losses for 2020, in line with the ACCC.

The rise within the recognition of cryptocurrencies stays essentially the most prevalent avenue by means of which Australians get scammed. Of those, the scams involving Bitcoin is essentially the most dominant.

“Funding scams are extra prevalent than ever, and scammers are capitalising on curiosity in cryptocurrency particularly,” ACCC Deputy Chair Delia Rickard mentioned.

“Greater than half of the $70 million in losses have been to cryptocurrency, particularly by means of Bitcoin, and cryptocurrency scams have been additionally essentially the most generally reported kind of funding rip-off, with 2,240 reviews.”

The proposition of funding alternatives with good incomes potentials has at all times been the attractive issue used to lure buyers. Capital misplaced from Bitcoin scams topped $25.7 million this 12 months, compared to $17.eight million throughout 2020, representing a rise of 44 per cent.

“Be cautious of funding alternatives with low threat and excessive returns. If one thing sounds too good to be true, it in all probability is,” Ms Rickard mentioned.

In keeping with the report, losses incurred by means of Ponzi schemes and imposter bond scams have been additionally well-liked. In keeping with the government-backed report platform, ScamWatch, roughly 58 and 400 reviews have been made for each scams routes within the first half of the 12 months.

Fraudulent actions involving cryptocurrencies are ever prevalent. Past Australia, such frauds sometimes involve Preliminary Coin Providing scams, such because the case of AML BitCoin lobbyist Jack Abramoff. With the pseudo-anonymous nature of digital currencies, their use in cyber fraud is sure to maintain being a menace. Many safety corporations are constructing instruments to assist monitor and expose these illicit actions.

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