Funding scams in Australia price buyers greater than 70 million Australian dollars ($50.5 million) within the first six months of 2021, with crypto scams contributing to greater than 50% of the losses, in keeping with Scamwatch data

As reported by the Australian Competitors and Client Fee (ACCC), Scamwatch information exhibits a 53.four% improve in funding scam-related studies, which is about to exceed $101 million by the top of this yr.

Primarily based on the four,763 studies obtained in 2021 alone, ACCC deputy chair Delia Rickard said that 2,240 of the complaints had been associated to cryptocurrency scams, and primarily attributed to Bitcoin (BTC).

Rickard stated that scammers lure buyers into utilizing pretend buying and selling platforms and superstar endorsements that promise excessive profitability. Whereas the buying and selling platforms initially enable buyers to withdraw some earnings utilizing different victims’ property, the scammer ultimately stops unwary buyers to withdraw their investments. “Be cautious of funding alternatives with low threat and excessive returns. If one thing sounds too good to be true, it most likely is,” she added.

Bitcoin-related funding scams in Australia have already exceeded $18.5 million, a steep improve of 44% in comparison with the full lack of practically $12.eight million in 2020.

Different kinds of scams plaguing Australian buyers included Ponzi scams, imposter bond scams and romance baiting scams.

Associated: Australian regulator issues warning about unlicensed crypto businesses

On Aug. 18, the Australian Securities and Investments Fee (ASIC) requested Australian residents to cease investing in cryptocurrency by way of unlicensed entities.

The regulator has advised investors to choose financial institutions that maintain an Australian Monetary Companies license. As per the studies obtained from buyers, the ASIC famous that a lot of the losses associated to crypto investments had been on account of “extreme leverage, platform outages, or unfair liquidations.”