‘Don’t delay’ – ASIC warns Aussies to look for 10 signs of a crypto scam
Australia’s market regulator has released a list of “top-10 ways to spot a crypto scam”, amid a perceived increase in crypto-related investment scams this year.
The Australian Securities and Investment Commission’s (ASIC’s) public advisory statement was published as part of Scams Awareness Week 2022, an initiative that teaches Australians to identify all forms of fraud. The campaign takes place between 7 and 11 November.
ASIC said Australians had already lost more through “investment fraud” in 2022 than the total figure of $701 million in 2021, while ASIC deputy head Sarah Court attributed cryptocurrencies to the steep rise in investment fraud over the past two to three years:
The main driver of the increase was cryptocurrency investment fraud, where losses increased by 270%. The ACCC has advised that losses to crypto fraud have increased further in 2022.”
“Given this worrying trend, we want to arm Australians with the information they need to protect themselves from fraudsters,” she added.
As part of the advisory, ASIC stated that cryptocurrency fraud falls into three categories. The first concerns fraud where the victim believes they are investing in a legitimate asset, but the crypto app, exchange or website turns out to be fake.
The second scam involves fake crypto-tokens used to facilitate money laundering activities, while the third type of scam involves using cryptocurrency to make fraudulent payments.
ASIC says the main signs of a crypto scam include “receiving an offer out of the blue”, “fake celebrity ads” and being asked by a “romantic partner you only know online” to send money in crypto.
Other red flags include being asked to pay for financial services in crypto, being asked to pay more money to access funds, withholding investment income “for tax purposes” or being offered “free money” or “guaranteed” return on investment.
The market regulator also said it was common for scammers to pressure victims into transferring crypto to their website. To prevent this problem, ASIC also advised crypto investors not to use online apps that are not listed on the Apple Store or Google Play.
Other things to look for are whether “strange tokens appear in your digital wallet,” ASIC said.
If defrauded, the court strongly advised victims not to “send more money” to the fraudster and “block all contact” from them if their identity is known:
“Don’t delay. Contact your bank or financial institution immediately to report the fraud. Ask them to stop any transactions. Also warn family and friends so they can watch out for potential follow-up fraud.”
Related: Aussies already lost $242 million to investments and crypto scams in 2022
A report by the Australian Competition and Consumer Commission (ACCC) on 7 November predicted losses from Australian targeted fraud will reach $4 billion Australian dollars by the end of 2022.
The ACCC has received $10 million in seed funding as part of its budget to build a national anti-fraud center to support the community in the fight against cybercriminals, which was confirmed by Finance Minister Stephen Jones on 7 November.
David Koch, the presenter of the Australian breakfast show Sunrise has called for the ACCC to demand more accountability on social media platforms such as Facebook, Instagram and LinkedIn in relation to fraudulent content that may be found on their platforms.
