Australians have fallen victim to crypto scams totaling $122 million (AUD 180 million) in the last 12 months, according to a new report from the Australian Federal Police (AFP). Most of the victims were under 50 years old, highlighting a shift in the demographic most targeted by scammers.
Surge in Crypto-Related Scams
In an August 28 statement, the AFP disclosed that a staggering $269 million (AUD 382 million) had been lost to investment scams over the past year, with nearly 47% of these involving cryptocurrency. The report underscores the growing prevalence of crypto scams, which have become increasingly sophisticated and challenging to detect.
According to Scamwatch, a government-run website, most of these scams are initiated through text messages or emails, making them difficult to avoid for even the most cautious individuals.
Younger Australians at Greater Risk
AFP Assistant Commissioner Richard Chin noted a significant trend in the age of scam victims. Around 60% of those defrauded were under 50, a shift from the common perception that older Australians are more susceptible to scams. Chin emphasized that younger individuals are increasingly being lured into these schemes due to the use of advanced technology and convincing marketing tactics.
The Methods Behind the Scams
The AFP identified two primary methods used by scammers: “pig butchering” and deepfakes. Pig butchering involves scammers cultivating personal relationships with victims on social media or other platforms before convincing them to invest in fraudulent schemes. Deepfakes, on the other hand, use artificial intelligence (AI) to create realistic audio and video of celebrities or trusted public figures, such as Tesla CEO Elon Musk, to promote fake investment opportunities.
“Scammers promise high returns with little risk, using convincing marketing and new technology to make the investment sound too good to miss,” Chin explained.
Despite the alarming figures, the AFP believes the reported data only scratches the surface. Many victims may not realize they’ve been scammed or are too embarrassed to come forward, meaning the true extent of the losses could be much higher.
Ongoing Threat and Caution Advised
“If an investment opportunity sounds too good to be true, then it probably is,” Chin warned. He also highlighted that the funds stolen through these scams could potentially be used to finance other criminal activities, including money laundering, drug trafficking, and human exploitation.
Investment scams remain the leading cause of financial loss for Australians. Scamwatch reports that Aussies have already lost over $68 million (AUD 100 million) to investment scams in 2024 alone. Interestingly, Scamwatch data suggests that those over 50 are still the most affected demographic, contradicting the AFP’s findings regarding the age of victims.
