Scams have always been one of the prominent issues crippling the cryptocurrency space, with several regulatory bodies around the world issuing statements on how to identify these scams. Now, the Australian Competition & Consumer Commission [ACCC] has released a report detailing scams affecting the Australian community, a report that also includes cryptocurrency scams.

The report detailed cryptocurrencies as,

“Cryptocurrencies, also known as virtual or digital currencies, are a form of electronic money. They do not physically exist as coins or notes. Virtual currencies can be bought or sold on an exchange platform using conventional money, or traded for other virtual currencies.”

The report revealed statistics pertaining to such crypto-scams, stating that around 647 instances where digital currency was used to make payment to scammers were recorded in 2018. The total amount of losses reported was around AUD 6.1 million [around $4.3 million]. Additionally, the total losses accruing from cryptocurrency scams in Australia rose by over AUD 2.1 million or 190%, when compared to 2017.

The report went on to state that this was the result of several “would-be investors actually investing in scam in excitement.” This was largely because of the massive surge in cryptocurrency prices towards the end of 2017 and beginning of 2018, which also resulted in Bitcoin reaching its all-time high.

The report said,

“Victims reported being tricked by online scammers into purchasing various cryptocurrencies through the scammer’s software platform, but […] when they tried to cash out, the scammers […] were no longer contactable […] In 2018, victims of ‘investment scams’ reported losing $2.6 million through payments in cryptocurrencies.”

The report also stated that according to Scamwatch, there were reports of individuals becoming victims to a different kind of scam. Such victims were being directed to the nearest Bitcoin ATM, where they were instructed to covert their money to Bitcoin first, before making the transfer.

“[…] Almost 50 per cent of the losses reported where cryptocurrency was the payment method were men in the 25–34 age group. As would be expected for an online phenomenon, 80 per cent of reports involving cryptocurrency identified an online mode of communication […]”

The post Australia reports a loss of over AUD 6.1 million in cryptocurrency scams for 2018 appeared first on AMBCrypto.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

191 +