Australia Initiates a Major Crackdown on Crypto Scams

Australia's financial regulator, ASIC, has dismantled over 600 crypto scams in the past year, highlighting the evolving use of AI by fraudsters.

Since July 2023, ASIC has taken down more than 5,530 fake investment platforms, 1,065 phishing links, and 615 crypto scams. Deputy Chair Sarah Court expressed concern over AI-generated deepfakes, which make it harder to detect fraud.

On average, 20 scam websites are removed daily, contributing to $1.3 billion in investment scam losses for Australians in 2023. Scammers often use fake endorsements from celebrities like Chris Hemsworth and Elon Musk to attract victims with promises of low investment and high returns.

AI is frequently used in scams, with cases of AI-generated voices mimicking Elon Musk to promote schemes. For instance, over 35 YouTube channels broadcasted a fake Musk voice in June.

ASIC also flagged Dexa Trade Markets, a fraudulent firm falsely claiming international regulation. The firm lacks the necessary licenses to operate in Australia.

AI could also help combat scams. SingularityNET CEO Ben Goertze suggested AI could analyze data to summarize crypto entities’ reputations, providing early warnings to potential investors.

The ACCC reported that over half of crypto ads on Facebook are scams or policy violations. Meta, Facebook’s parent company, disputed this, stating the data is outdated and that they have improved their ad monitoring.