Cryptocurrency scams in Australia have reached an alarming rate with a surge of over 162% in 2022. According to the Australian Competition and Consumer Commission, these scams have resulted in losses of AUD 221.3 million ($148.3 million). The report revealed that there were 3,910 crypto scam incidents reported, with an average loss of AUD 56,600 per victim. Despite the worrying figures, crypto scams only accounted for 7.1% of the total AUD 3.1 billion ($2.08 billion) worth of scams reported in Australia for the year.
The report also highlighted that although bank transfers remained the most popular scam payment method, crypto scammers were able to swindle 250% more value from each victim. ACCC Deputy Chair Catriona Lowe attributes the rise in scams to increasingly “sophisticated” tactics used by fraudsters. She emphasized the need for collaboration between the government, law enforcement, and private sector to combat this issue effectively. The report is a clear indication that Australians need to exercise caution while investing in cryptocurrencies and be vigilant against such scams.