Australians lose $122 million in cryptocurrency scams, with younger victims losing the most

Australians have reportedly lost at least AUD 180 million (approximately USD 122 million) in cryptocurrency investment scams over the past year.

Victims under 50 now account for around 60% of scam reports, outnumbering older Australians who are generally considered more vulnerable to such schemes.

Cryptocurrency-based investment scams in Australia

The data, compiled by the Australian Cyber ​​Security Centre (ACSC) from police reports via cyber.gov.au, shows total losses of A$382 million (approximately $269 million) from investment scams in the 2023-24 financial year, with 47% of these losses attributed to cryptocurrencies.

In addition, around 60% of these reports came from Australians under the age of 50. AFP Deputy Commissioner Richard Chin said the data challenged the misconception that only older people were victims of fraud.

Chin stressed that bad actors frequently employ high-pressure tactics and a variety of methods to trick victims into making poor investment decisions, with “pig slaughter” schemes and deepfake technology being two widespread strategies.

She also advised the community to remain cautious and avoid feeling pressured into investing, while encouraging people with concerns to stop communicating, seek independent financial advice and report any suspected investment scam to their financial institution or digital currency exchange, as well as alert the authorities via cyber.gov.au.

Chin said the AFP and its law enforcement partners are working closely with the banking industry and digital currency exchanges to assist victims of investment scams and attempt to recover funds lost to bad actors.

Chin also added:

“If an investment opportunity seems too good to be true, then it probably is. Most scammers are motivated by financial gain, but stolen funds could be used to finance future criminal operations, such as money laundering, illicit drug trafficking or human exploitation. We have seen cases where organised crime groups exploit people and force them to work in horrific conditions in order to scam people.”

Investment scams in Australia

Earlier this month, the Australian Securities and Investments Commission (ASIC) revealed which had shut down 615 cryptocurrency investment scams in the first year of its effort to tackle fraudulent investment websites.

The Australian Government’s anti-scam initiative relies heavily on ASIC’s ability to take down investment scam websites, which plays a critical role in thwarting fraud and protecting Australians.

Suspicious websites are sent to a specialist cybercrime detection company and, once evidence of malicious activity is confirmed, takedown is carried out, typically involving a number of government and industry partners. ASIC’s joint efforts with the National Anti-Scam Centre (NASC) have helped reduce such losses from $1.5 billion in 2022 to $1.3 billion in 2023.