Key Points
- Australians lost over $180 million AUD ($122 million USD) to cryptocurrency investment scams in just 12 months, with victims now more likely to be under 50 years old.
- The AFP is highlighting two common scam tactics: “pig butchering” and the use of deep fake technology. It is urging Australians to exercise caution and share their experiences to prevent further victimization.
In a startling revelation during Scams Awareness Week, the Australian Federal Police (AFP) has sounded the alarm on the growing threat of cryptocurrency investment scams. The AFP-led Joint Policing Cybercrime Coordination Centre (JPC3) has released data showing that nearly half of all reported investment scam losses in Australia now involve cryptocurrency.
Young Australians Increasingly Targeted
Contrary to popular belief, it’s not just older Australians falling victim to these sophisticated scams. The data reveals that individuals under 50 make up about 60% of investment scam reports. This shift highlights the evolving nature of cyber fraud and the need for increased awareness across all age groups.
AFP Assistant Commissioner Richard Chin emphasized:
“It’s a misnomer that only older people are victims of scams. Scams Awareness Week is a timely reminder for all community members to know the signs of an investment scam and how to avoid becoming a victim.”
Common Tactics: Pig Butchering and Deepfakes
The AFP has identified two prevalent tactics scammers use: “pig butchering” and deepfake technology.
Pig butchering involves scammers building close relationships with victims over weeks or months before encouraging investments in seemingly legitimate platforms. These platforms are controlled by scammers, who disappear once they’ve extracted maximum funds.
Deepfake technology creates convincing impersonations of celebrities and public figures, promoting fake investment schemes through social media and messaging apps. These sophisticated techniques make it increasingly difficult for potential victims to distinguish between legitimate opportunities and fraudulent schemes.
Call for Vigilance and Reporting
The AFP urges Australians to exercise extreme caution when approaching investment opportunities, especially those that seem too good to be true. Assistant Commissioner Chin advises, “If you believe you are a victim of an investment scam, notify your financial institution or digital currency exchange and alert police through cyber.gov.au.”
Notably, the AFP encourages victims to share their stories with friends, family, and community members. This openness can help raise awareness and make it harder for scammers to find new victims.
As cryptocurrency continues to gain popularity, it’s clear that education and vigilance are vital to protecting oneself from these evolving threats. The AFP’s warnings serve as a crucial reminder that in the world of digital finance if an opportunity sounds too good to be true, it probably is.
