Investment scams in Australia cost investors over $70 Mln Australian dollars within the primary six months of this year, with crypto scams contributing to over 50% of the losses, consistent with Scamwatch data.
As reported by the ACCC [Australian Competition and Consumer Commission], Scamwatch data revealed a 53.4% increase in investment scam-related reports, which is about to exceed $101 Mln by the end of this year.
Based on the 4,763 reports received in 2021 alone, ACCC deputy chair Delia Rickard outlined that 2,240 of the complaints were associated with cryptocurrency scams, and mainly associated with Bitcoin [BTC].
Rickard explained that scammers lure investors into using fake trading platforms and celebrity endorsements that promise high profitability. While the trading platforms initially permit investors to withdraw some profits using other victims’ assets, the scammer eventually stops unwary investors to withdraw their investments. “Be wary of investment opportunities with low risk and high returns. If something sounds too good to be true, it probably is,” she outlined in detail.
Bitcoin-related investment scams in Australia have already exceeded $18.5 Mln, a steep hike of 44% compared to the entire loss of nearly $12.8 Mln earlier last year.
Other sorts of scams plaguing Australian investors included Ponzi schemes, imposter bond scams, and romance baiting schemes.
Just earlier on 18th Aug., the ASIC [Australian Securities and Investments Commission] asked Australian citizens to prevent investing in cryptocurrency via unlicensed entities.