Crypto Scams Cost Australians $122M in a Year, AFP Warns of Deepfakes and Pig Butchering

Australians lost $122 million to crypto scams in the past year, with most victims under 50. AFP highlights deepfakes and pig butchering as key scam methods.

Australians have fallen prey to crypto scams totaling $122 million ($180 million AUD) over the past 12 months, according to the Australian Federal Police (AFP). The AFP report reveals that younger Australians are increasingly targeted, with modern scam tactics such as deepfakes and pig butchering being the primary methods used by fraudsters. This concerning trend underscores the need for greater awareness and vigilance in the face of evolving digital threats.

Hacker using modern technology to orchestrate crypto scams, costing Australians millions.

Key Points:

1. Massive Financial Losses:

   • Australians lost $122 million to crypto-related scams over the past year, accounting for 47% of all investment scams, which totaled $269 million.

   • The majority of victims (60%) were under the age of 50, challenging the stereotype that older individuals are more susceptible to scams.

     
     

2. Modern Scam Techniques:

   • The AFP identified deepfakes and pig butchering as the most common methods used in these scams.

   • Pig butchering involves scammers building trust over time through social media or other platforms before convincing victims to invest in fraudulent schemes.

   • Deepfakes use AI-generated videos or audio of well-known figures like Elon Musk to deceive victims into believing in the legitimacy of the scam.

     
     

3. Underreporting and Future Risks:

   • AFP Assistant Commissioner Richard Chin noted that the reported figures likely represent just the tip of the iceberg, as many victims are either unaware they’ve been scammed or are too embarrassed to report it.

   • Stolen funds from these scams are often used to finance other criminal activities, such as money laundering or human trafficking.

     
     

4. Warnings and Prevention:

   • The AFP and the Australian Government’s Scamwatch website emphasize that if an investment opportunity seems too good to be true, it probably is.

   • Scamwatch also reported that investment scams are the most common way Australians lose money in 2024, with losses exceeding $68 million.

Related: Bitcoin May Surge to $150K in "Batshit Season" Despite Short-Term Selling Pressure

The alarming rise in crypto-related scams in Australia highlights the evolving tactics of fraudsters and the increasing risk to younger populations. With the use of advanced technologies like deepfakes and social engineering techniques like pig butchering, scammers are becoming more sophisticated and harder to detect. Public awareness and caution are critical to preventing further losses and protecting potential victims from falling prey to these scams.

Source: Cointelegraph