According to Scamwatch, Australian cryptocurrency investors have lost at least A$242 million ($166 million) to crypto scams since the start of 2022.
In May, there were 861 reports with losses totalling over A$35 million (over $25 million), making it the second highest month since March.
Mobile apps, phones, and social media were the biggest areas where people lost money. Scams include everything from romance-baiting pig slaughtering schemes to traditional Ponzi scams and crypto cons.
50% of scam victims reported to Scamwatch having suffered financial losses. Scamwatch data shows 5,397 reports from investors, with most having been males between the ages of 55 and 64.
New Australian Crypto Police Unit
The AFP recently created a new enforcement unit to focus on the crypto market because of the rise in illegal activities involving cryptocurrencies.
The new unit is said to provide law enforcement agencies with the ability to track and shut down crypto laundering activities.
AFP’s national manager, Stefan Jerga says targeting assets provides valuable investigative tracing capabilities and lenses across all of our commands across all of our businesses, whether they are national security-related, child protection, cyber, or the ability to trace cryptocurrency transactions across relevant blockchains.
The Australian Federal Police (AFP) has already seized over $600 million in illegal crypto gains in properties, digital assets, and luxury items such as cars and boats, thanks to the creation of a new crypto police unit earlier this month.
Australia announced that it would adjust its crypto regulations by “token mapping” the crypto industry in order to prevent crypto scams and illegal crypto-related activities.
This will reveal the coding and technological attributes of all digital asset tokens, as well as whether certain crypto assets are already subject to financial services law or need special legislation.
The creation of the first unit prompted the AFP to warn about the use of cryptocurrency for money laundering.
In April, AUSTRAC’s deputy chief executive John Moss commented on the situation, noting that cryptocurrencies’ inherent anonymity was one of the things that made them attractive to criminals.
