According to Scamwatch data, investment scams in Australia cost investors more than 70 million Australian dollars ($50.5 million) in the first six months of 2021, with crypto scams accounting for more than half of the losses.
According to the Australian Competition and Consumer Commission (ACCC), Scamwatch data shows a 53.4 percent increase in investment scam reports, with a total value of $101 million expected by the end of the year.
According to ACCC vice-chair Delia Rickard, 2,240 of the 4,763 complaints received in 2021 were connected to cryptocurrency frauds, with Bitcoin accounting for the majority of them (BTC).
Scammers, according to Rickard, entice investors to use phoney trading systems with celebrity endorsements that promise large profits.
While the trading platforms first allow investors to withdraw a portion of their gains using the assets of other victims, the scammer eventually prevents naïve investors from withdrawing their funds.
“Be aware of low-risk, high-return investing possibilities. It’s usually true if something sounds too wonderful to be true,” she noted.
The total losses from Bitcoin-related investment frauds in Australia have now surpassed $18.5 million, a 44 percent rise from the total losses of roughly $12.8 million in 2020.
Australia and Ponzi Scheme
Ponzi schemes, 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 organizations that have an Australian Financial Services license, according to the regulator.
According to investor complaints, the majority of losses related to crypto investments were caused by “over-leverage, platform breakdowns, or unfair liquidations.”