Fraudsters ‘Making a Killing’ in Crypto Scams

CANBERRA, Australia—Despite the extensive campaigns to sensitize crypto holders against crypto scams, fraudsters are still making a killing, especially in Australia, a new report indicates. 

According to a reportby the country’s Competition and Consumer Commission, in 2018, there were 674 reported scams involving cryptos. Losses from these cases exceeded $4.3 million, the report indicated. This is a 190% rise from $1.5 million in losses reported in 2017, noted Coin Geek in its analysis.

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Canberra, Australia

“In 2017, crypto scamstook off as popularity of digital currencies took off globally. In Australia, such scams hit a fever pitch in the final months of the year, the report revealed. However, the losses in 2017 pale in comparison to last year’s, when fraudsters made a killing targeting gullible investors in the country,” Coin Geek said.

The scam category that most fraudsters used was investment scams. They lured investors with promises of incredible returns, only to take off with their money. Investors lost $1.8 million in investment scams in 2018, the report revealed.

However, this wasn’t the only method used. The report noted “Scamwatch has also received reports from victims of various types of scams being directed by a scammer to the nearest Bitcoin automatic teller machine to convert money to Bitcoin and then transfer it to the scammer.”

The report also revealed that an overwhelming majority of the victims were men aged between 25 and 34. Further, in over 80% of the cases, the fraudsters used an online mode of communication, with social media being the outright leader, Coin Geek noted.

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Copyright Year: 2019
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