Australians lose $122m to crypto scams, with under-50s most affected

Australians have lost more than $120 million to crypto investment scams in just 12 months, with under-50s increasingly becoming prime targets.

Crypto investment scams are on the rise across Australia, with more and more young people falling victim as scammers use more sophisticated tactics.

Australians have lost more than A$180 million (more than $122 million) to crypto investment scams in the past 12 months, according to an August 28 press release from the Australian Federal Police, with younger individuals increasingly targeted. Data released by the AFP reveals that almost half of all investment fraud losses reported to police involve cryptocurrencies, with victims under the age of 50 now accounting for 60% of cases.

“Most fraudsters are motivated by financial gain, but stolen funds can be used to fund future criminal enterprises such as money laundering, drug trafficking or human exploitation.”

Richard Chin, AFP assistant commissioner

Australians lost more than A$382 million (about $US260 million) to investment scams in the 2023-24 financial year, with almost half of investment scam losses involving cryptocurrencies, the AFP reported.

The federal law enforcement agency, working in partnership with state and territorial police, urged the public to be especially careful when faced with investment opportunities that appear too good to be true. The agency highlighted tactics such as “pig-slaughtering”, where scammers build long-term relationships with victims before convincing them to invest, and the use of deepfake technology to impersonate trusted figures.

Australia braces for rise in crypto scams

The warning comes after the Australian Securities and Investments Commission’s recent disclosure that it has coordinated the removal of more than 7,300 phishing websites since July 2023, including 5,530 fake investment platforms, 1,065 phishing scam links, and 615 crypto investment scams.

Investment scams remain the most common type of fraud affecting Australians, with total losses set to reach $1.3 billion by 2023. ASIC attributed the widespread phishing activity to the use of fake news articles and deepfake videos, particularly those featuring public figures promoting fake online investment platforms on social media.