According to a new report from the Australian Federal Police, Australians have lost $122 million, nearly $180 million AUD, to crypto scams in the last 12 months. Most of the victims are under the age of 50.
Overall Losses
Over the past year, total losses from investment scams amounted to $269 million. The Australian Federal Police (AFP) revealed that 47% of these scams were related to cryptocurrency.
Scammers' Methods
The AFP announced that scammers have been using deepfakes and a method called 'pig butchering' to deceive victims. 'Pig butchering' involves building an emotional connection with the victim over social media before encouraging them to participate in a fraudulent investment. Deepfakes are fake videos or audio recordings featuring influential figures, such as Elon Musk, to lure victims into scam schemes. quote: *“When I search for 'Bitcoin Magazine' on YouTube, the 3rd result is a scam deepfake AI of Elon Musk pretending to be a livestream of today's event telling people to send their bitcoin and eth to it, and shows over 170K viewers. Have you no shame @YouTube?”* - Tomer Strolight (@TomerStrolight), July 27, 2024
Victims' Age Statistics
Richard Chin, Assistant Commissioner at AFP, highlighted the age of the victims. According to the collected data, 60% of the victims are under the age of 50. This contradicts the common belief that older populations above 50 are easier targets for crypto scams. quote: *“Scammers promise high returns with little risk, using compelling marketing and new technology to make the investment sound too good to miss.”* - Richard Chin
Scamwatch, an Australian government website, also shows that the most prominent way citizens lose money is through investment scams. However, contrary to AFP data, it also indicates that people over 50 are more likely to fall victim to such scams. Richard Chin noted that it’s possible many victims are unaware they have been scammed or are avoiding reporting out of embarrassment.
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