Aussies Hit Hard by Crypto Scams, with Deepfakes and Pig Butchering Leading the Charge
Australians have been dealt a hefty blow by crypto scams over the past 12 months, with losses totaling a staggering 180 million Australian dollars (about $122 million USD), according to a new report from the Australian Federal Police (AFP). The report, released on August 28, reveals that nearly half of the total investment scam losses were crypto-related.
The Shocking Stats
In the past year, Australians lost a total of 269 million AUD ($382 million USD) to various investment scams. Of this, approximately 47% was attributed to cryptocurrency fraud. AFP Assistant Commissioner Richard Chin highlighted a concerning trend: the majority of scam victims are under the age of 50. This demographic shift is notable given that older Australians are often perceived as more vulnerable to scams.
Modern Scamming Tactics: Pig Butchering and Deepfakes
Scammers are using increasingly sophisticated methods to deceive their victims, with “pig butchering” and deepfakes being the most prevalent techniques.
- Pig Butchering: This tactic involves scammers cultivating a personal relationship with their targets through social media or other platforms before convincing them to invest in fraudulent schemes. The term “pig butchering” refers to the process of “fattening up” victims with trust before “slaughtering” them financially.
- Deepfakes: Scammers are also leveraging artificial intelligence to create convincing fake audio and video. Often, they use the likenesses of celebrities, including high-profile figures like Tesla CEO Elon Musk, to lend credibility to their scams and lure in unsuspecting investors.
Chin emphasized the alarming nature of these tactics, stating, “Scammers promise high returns with little risk, using convincing marketing and new technology to make the investment sound too good to miss.”
The Tip of the Iceberg?
The AFP’s report suggests that the actual number of victims may be even higher. Many people might not realize they’ve been scammed or may feel too embarrassed to come forward. Chin warns, “If an investment opportunity sounds too good to be true, then it probably is.”
He also points out that the stolen funds from these scams might not only enrich the perpetrators but could also be used to support other criminal activities, such as money laundering, drug trafficking, or human exploitation.
Scamwatch Data: A Different Perspective
The Australian Government’s Scamwatch website shows that investment scams remain the top method for financial losses in Australia, with reported losses exceeding 100 million AUD ($68 million USD) in 2024 alone. However, Scamwatch data contrasts with the AFP’s findings, indicating that the over-50 age group is more often affected by these scams.
Looking Ahead
As crypto scams continue to evolve with technological advancements, it’s crucial for Australians to stay informed and skeptical of seemingly too-good-to-be-true investment opportunities. Both individuals and authorities need to remain vigilant to combat these sophisticated fraud schemes and protect potential victims from financial harm.
