Crypto Scams Hit Australians Hard, New Report Shows

In the past year, Australians have lost AU$180 million (US$122 million) to cryptocurrency scams, with most victims being under 50 years old, according to a recent report from the Australian Federal Police (AFP).

The AFP’s statement on August 28 revealed that out of AU$269 million (US$382 million) lost to investment scams, nearly half involved cryptocurrencies. AFP Assistant Commissioner Richard Chin noted that about 60% of the scam victims were under 50, surpassing the older demographic typically considered more vulnerable.

The report highlighted that modern technology, including “pig butchering” and deepfake scams, is frequently used. Pig butchering involves scammers creating a personal connection with victims through social media before persuading them to invest in fraudulent schemes.

Deepfakes use AI-generated audio and video of well-known figures to deceive individuals into investing in fake opportunities, with figures like Elon Musk being commonly exploited.

Chin emphasized that the reported figures might represent only a fraction of the actual losses, as some victims may not realize they have been scammed or may be too embarrassed to report it. He warned, “If an investment seems too good to be true, it probably is,” and noted that stolen funds could be used to finance other criminal activities such as money laundering or drug trafficking.