Home News Australians lost over $25 million to Bogus Crypto Investments

Australians lost over $25 million to Bogus Crypto Investments

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Australians lost over $25 million to bogus crypto investments. Similarly, bitcoin-related venture frauds have effectively surpassed $18.5 million. The aforementioned reflects an increase of 44% compared to the total losses of nearly $12.8 million in 2020.

By the year’s end, losses will expectedly reach $140 million

Investment scams reported to Scamwatch have cost Australians over $70 million in the first half of this year. The previously mentioned represents more than the total losses reported to Scamwatch for all of 2020. Likewise, the projected losses will expectedly reach $140 million by the end of the year.

Data from Scamwatch reveals an increase in investment scams of 53.4% this year. With that said more than $101 million set to be reported by the end of this year, according to the Australian Competition and Consumer Commission (ACCC).

Investing in cryptocurrency scams

Delia Rickard, ACCC’s deputy chair, stated that among the 4,763 complaints they received in 2021 alone, 2,240 were related to cryptocurrency scams, mainly to Bitcoin.

Scammers lure investors with high-profitability promises made by celebrities and fake trading platforms, Rickard said. Additionally, after allowing some investors to withdraw profits using other victims’ assets in the beginning, fraudulent traders eventually halt withdrawals.

Australian investors also experienced Ponzi scams, imposter bond scams, and romance baiting scams.

Be wary of Unlicensed Entities

On Wednesday, the Australian Securities and Investments Commission (ASIC) advised Australian citizens to refrain from investing in cryptocurrency through unlicensed companies.

Consequently, the regulator has advised investors to select financial institutions that hold an Australian Financial Services license. Relatively, the ASIC noted that most losses associated with cryptocurrency investments were a result of “excessive leverage, platform outages, or unfair liquidations.”

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