AFP Issues Alert on Crypto Scams Amid $180 Million Loss in Just 12 Months

Australians reported losing AU$382 million to investment scams in the 2023-24 financial year according to data released yesterday by the Australian Federal Police (AFP). The AFP says almost half of the total losses to investment scams were in the form of cryptocurrency.

The AFP’s data also shows that under-50s are now the most likely victims—upending the common notion that most investment scam victims are the kind of oldies who accidentally type Google search terms into their Facebook status update.

Related: ASIC Clamps Down on 615 Crypto Scam Websites as Fraudulent Activities Surge to $1.3 Billion

Impact Of Scams Not Limited to The Old or Naive, Says AFP

The data — released as part of the AFP’s Scam Awareness Week education campaign — was collected by the Australian Cyber Security Centre (ACSC) and is made up of reports to police via cyber.gov.au. Worryingly, the AFP’s data found that 47% of the total losses to investment scams last financial year involved crypto — AU$180 million of the total AU$382 million.

Perhaps because of the prevalence of crypto, which is more popular among younger Aussies, the data also shows that around 60% of investment scam victims were aged under 50. AFP Assistant Commissioner Richard Chin said it’s a “misnomer that only older people were victims of scams”.

Chin added that this data provides an important reminder that everyone needs to remain vigilant against scams, it’s not only naive or non tech-savvy people who are impacted:

Scams Awareness Week is a timely reminder for all members of the community to know the signs of an investment scam and how to avoid becoming a victim.

Richard Chin, AFP Assistant Commissioner

Chin also noted that losses to investment scams are still likely to be underreported:

Investment scams were often underreported as individuals were either not aware they were victims, or too embarrassed to report the crime to authorities.

Richard Chin, AFP Assistant Commissioner

AFP Working with Partners to Combat Scams

The AFP highlighted two scamming tactics Australians should be on heightened alert for:

• Pig butchering, in which scammers slowly build a close relationship with a victim, creating a sense of trust before encouraging them to invest in fraudulent schemes; and
• Deep fakes, in which scammers impersonate well known figures to foster a sense of familiarity and trust before fleecing their victims.

Assistant Commissioner Chin advised all Australians “to exercise a high degree of caution when approached by unknown entities on the internet or over online communication platforms offering an investment opportunity.”

He also encouraged victims to tell their story, even if they’re embarrassed, saying that by sharing their stories victims can increase awareness and help prevent others falling victim:

If you are a victim of an investment scam, think about telling your friends, family or community what happened. The more people who know about these unscrupulous criminals, the harder it will be for them to scam victims.

Richard Chin, AFP Assistant Commissioner

Related: AFP: Phishing Scam Compromises Thousands of Australian Crypto Wallets

Chin said the AFP and its law enforcement partners were working closely with banks and crypto exchanges to help recover lost assets:

The AFP and its policing partners work closely with the banking industry and digital currency exchanges to assist victims of investment scams and try to recover money lost to scammers.

Richard Chin, AFP Assistant Commissioner