AFP Warns Aussies of Crypto Scams After $122M Lost in 12 Months

Over the previous year, Australians have lost at least AU$180 million ($122 million) to cryptocurrency investment frauds. The Australian Federal Police (AFP) released a warning on Wednesday on the increased complexity and number of investment scams involving cryptocurrencies.

The warning letter is part of an Australian effort to denounce fraudulent schemes called Scams Awareness Week 2024. Together with state police, the AFP raised awareness of the need for people to “share a story, stop a scam.”

Australians reported losing at least $180 million of cryptocurrency in investment scams in just 12 months, with victims now more likely to be under the age of 50 years. https://t.co/H1PFHtop4q

— AFP (@AusFedPolice) August 27, 2024

According to the warning, Australians under 50 have fallen victim to several crypto investment scams. Cryptocurrencies have been implicated in nearly half of all investment fraud losses reported to the Joint Policing Cybercrime Coordination Center (JPC3). Furthermore, the new statistics showed that in 2023–2024, Australians lost AU$382 million ($259 million) to investment fraud. Cryptocurrency losses accounted for 47% of the investment fraud losses.

AFP warns citizens

The report focuses on two primary categories of fraud: deep fakes and pig butchering. Scammers use social media to establish personal connections with victims and trick them into making fake investments, known as “pig butchering.”

“Scammers frequently use pressure tactics and different methodologies to lure victims into making poor investment decisions,” stated AFP Assistant Commissioner Richard Chin. “Pig butchering and using deepfake technology are two common methods.”

Chin cautioned that the AFP’s numbers could only represent a small portion of the victims since many may remain unaware of their deception or may be too ashamed to come forward. 

According to the Australian government’s Scamwatch program, investment scams are the most popular way Australians lose money. Scamwatch documented losses of over $68 million (AUD 100 million) in 2024 alone. Interestingly, Scamwatch data shows that scammers target those over 50 more often.

Chin continued by saying that money laundering and drug trafficking are two more illegal activities that are frequently supported by the revenues taken from these frauds. Australians must be cautious of investment possibilities that offer improbable profits.

AFP collaborates with banks and exchanges to assist scam victims.

The Australian Securities and Investments Commission (ASIC) said earlier this month that, in the first year of a campaign to combat phony investment websites, it had shut down 615 bitcoin investment frauds and that, in the previous year, Australians had lost A$1.3 billion ($870 million) to investment scams. The statistics, according to Chin, dispelled the myth that con artists target older people.

In addition, the AFP is working with a few banks and cryptocurrency exchanges to “help victims of investment scams.” They also want to recover any money stolen by scammers. The federal police have now made available a platform, cyber.gov.au, allowing victims of cryptocurrency fraud to alert and report scammers.

Chin also urged victims to inform friends, relatives, and the community about the nature of the scam.