The Australian Securities and Investments Commission (ASIC) reportedly took down 615 crypto scams in 12 months.
According to an August 19 statement, scammers use fake news articles, reviews, and deepfake videos generated using Artificial Intelligence (AI) to dupe Australians on social media platforms.
The recent crackdown was part of a year-long effort to dismantle over 5530 fraudulent investment platforms and over 1065 phishing links.
Crypto scams are evolving
Sarah Court, Deputy Chairman of ASIC, raised concerns about recent advancements in technologies like AI, noting that they are empowering bad actors and offering more sophisticated means to “steal information and money.”
Allegedly, the ASIC shuts down an average of 20 scam websites every day.
Invest scams of these sorts are the most prevalent type of scam in Australia. Over $1.3 billion in losses have been recorded in 2023 alone per the report added. However, the regulator also noted a drop in losses as result of the recent crackdowns.
The securities regulator collaborated with other government agencies and third-party companies to remove websites that were found to be connected to scams. All of these platforms offered various lucrative investments in crypto and other avenues, like AI.
A common trick employed by the scammers involved fake celebrity endorsements from popular figures in the nation, like actor Chris Hemsworth and Elon Musk.
Musk is especially a favourite among scammers because of his active involvement in the cryptocurrency sector. For instance, in June, scammers hijacked over 35 YouTube channels to run a live stream that promoted a scam promising to double crypto investments. The video featured a deep-fake voice of Elon Musk asking viewers to take up the opportunity.
A similar tactic has been used to impersonate Australian entrepreneur Andrew Forrest for promoting a fake crypto trading app.
The report also highlighted another instance where a fake trading platform dubbed Dexa Trade Markets claimed to be internationally regulated and falsely advertised its trading volume.
ASIC has urged residents to do thorough research and check ASIC’s investor alert section to confirm the legitimacy of such claims, adding:
Act quickly if something feels wrong. If you have shared financial information or transferred money, contact your bank immediately.
Australian crypto sector plagued by scams
The report comes days after the Australian Competition and Consumer Commission sued tech giant Meta over scam crypto ads on Facebook. The investigation started in 2022, and it found that the social media platform had allowed at least 600 advertisements that used fake celebrity endorsements to promote crypto scams.
Similar to ASIC’s claims, these ads featured prominent Australian figures like TV personality David Koch and directed users to malicious platforms designed to dupe investors.
According to data from the government-run fraud monitoring platform Scamwatch, investment scams have resulted in over $78 million in losses for Australian investors. Meanwhile, the nation’s financial intelligence agency AUSTRAC has reported that cryptocurrencies are one of the most common payment methods used in these schemes.
Such findings have resulted in major banks distancing themselves from the crypto sector.
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