Australians have fallen victim to cryptocurrency scams, losing an astounding $122 million (approximately AUD 180 million) over the past year, as revealed by a recent report from the Australian Federal Police (AFP). This significant loss accounts for nearly half of the $269 million (AUD 382 million) lost to all forms of investment scams during the same timeframe.
In a notable shift from past trends, AFP Assistant Commissioner Richard Chin disclosed that around 60% of the victims were under the age of 50. Traditionally, older Australians have been more susceptible to scams, but the data suggests that younger individuals are now increasingly at risk.
The AFP report outlines two primary methods used by scammers: “pig butchering” and deepfake technology. Pig butchering scams involve scammers establishing personal relationships with their targets through social media before enticing them into fraudulent investment schemes. Deepfakes, on the other hand, employ sophisticated artificial intelligence to create convincing fake audio and video, often featuring high-profile figures like Tesla CEO Elon Musk, to deceive individuals into investing in non-existent ventures.
“Scammers often resort to pressure tactics and various methodologies to coerce victims into making unwise investment decisions,” said Chin. “The use of pig butchering and deepfake technology are among the most prevalent tactics observed.”
Chin also cautioned that the reported figures might represent just a fraction of the actual losses, as many victims either remain unaware they have been scammed or are too embarrassed to come forward. He emphasized, “If an investment opportunity seems too good to be true, it probably is.”
Supporting these findings, the Australian Government’s Scamwatch has identified investment scams as the leading cause of financial losses among Australians. In 2024 alone, Scamwatch recorded over $68 million (AUD 100 million) in losses. Interestingly, data from Scamwatch suggests that while younger Australians are increasingly targeted, those over 50 remain frequent victims of these schemes.
Chin further noted that the funds stolen through these scams often finance other illicit activities, such as money laundering and drug trafficking. He urged Australians to remain vigilant and critically assess investment opportunities, particularly those that promise unrealistically high returns.
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