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

Australians lost over $120 million to crypto investment fraud in just 12 months, with those under 50 increasingly becoming the primary targets.

Crypto investment scams are surging across Australia, with younger individuals increasingly falling victim as fraudsters employ more sophisticated tactics.

According to an Aug. 28 press release from the Australian Federal Police, Australians lost over AUD$180 million (more than $122 million) to crypto investment scams in the past 12 months, with younger individuals increasingly targeted. Data released by the AFP reveals that nearly half of all investment scam losses reported to police involved cryptocurrencies, with victims under the age of 50 now comprising 60% of cases.

“Financial gain is what motivates most scammers however stolen funds could be used to bankroll future criminal ventures such as money laundering, trafficking illicit drugs, or human exploitation.”

Richard Chin, AFP assistant commissioner

The AFP says Australians reported losing over AUD$382 million (nearly $260 million) to investment scams in the 2023-24 financial year, with nearly half of the investment scam losses involving cryptocurrency.

The federal law enforcement agency, in partnership with state and territory police, urged the public to remain vigilant, especially when approached with investment opportunities that seem too good to be true. The agency highlighted tactics such as “pig butchering,” 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 surge in crypto scams

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

Investment scams continue to be the most prevalent type of fraud affecting Australians, with total losses reaching $1.3 billion in 2023. ASIC attributed the widespread phishing activity to the use of fake news articles and deepfake videos featuring public figures endorsing fraudulent online investment platforms, particularly on social media.