According to reports, the Australian Securities and Investments Commission has taken down 615 cryptocurrency scams over the past 12 months.
A statement from August 19, 2018 states that scammers are using fake articles, reviews and deepfake video generated by Artificial Intelligence to deceive Australians via social media.
This recent crackdown is part of an ongoing effort that has lasted over a year to demolish over 5530 fraudulent investment platforms, and more than 1065 phishing sites.
The crypto scam is evolving
Sarah Court, the Deputy Chairperson of ASIC raised concern about recent advances in technology, such as AI. She noted that these technologies empower bad actors, and offer more sophisticated ways to “steal money and information.”
ASIC allegedly shuts down 20 fraud websites on average every day.
These types of investment scams are most common in Australia. The report states that over $1.3 billion has been lost in Australia alone in 2023. The regulator noted that losses have decreased as a result of recent crackdowns.
In collaboration with government agencies, third-party companies and other organizations, the securities regulator removed websites found to be linked to scams. These platforms all offered lucrative investment opportunities in cryptocurrency and AI.
Scammers often use fake endorsements by celebrities in the country, such as actor Chris Hemsworth or Elon Musk.
Musk has become a favorite of scammers due to his involvement in cryptocurrency. In June, for example, scammers took over 35 YouTube channels and ran a livestream that advertised a scam offering to double cryptocurrency investments. In the video, a fake voice of Elon Nikola Musk was heard asking for viewers to grab this opportunity.
The impersonation of Australian entrepreneur Andrew Forrest was used for the promotion of a fake cryptocurrency trading app.
Report also highlighted an instance in which a fake platform called Dexa Trade Markets falsely claimed that it was internationally regulated, and advertised falsely its trading volume.
ASIC urges residents to conduct thorough research, and to check ASIC’s Investor Alert section for confirmation of the validity of these claims.
If you feel something is not right, act quickly. Contact your bank immediately if you’ve shared information about finances or sent money.
Australian Crypto sector plagued with scams
This report was released just days after Australian Competition and Consumer Commission filed a lawsuit against tech giant Meta for scam cryptocurrency ads posted on Facebook. It began in 2022 and found at least 600 ads that promoted crypto scams using fake celebrity endorsements.
These ads, which are similar to ASIC’s claim, feature prominent Australian figures such as TV personality David Koch. They direct users to malicious platforms that aim to defraud investors.
Scamwatch is a government fraud monitoring platform that has reported losses of over $78 Million for Australian investors. AUSTRAC, Australia’s national financial intelligence agency, has also reported that cryptocurrency is one of the main payment methods in such schemes.
These findings led to major banks separating themselves from crypto.
The post Australia’s ASIC shuts 615 crypto-scams in one year could be updated as new information becomes available
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