‘Do not delay’ — ASIC warns Aussies to look for 10 signs of a crypto scam
Australia’s market regulator has released a list of the “top-10 ways to spot a crypto scam," amid a detected rise in crypto-related investment scams this year.
The Australian Securities and Investment Commission's (ASIC's) public advisory statement was published as part of Scams Awareness Week 2022, an initiative that teaches Australians how to identify all forms of scams. The campaign takes place between Nov. 7 to 11.
ASIC said that Australians had already lost more through “investment scams” in 2022 than the total $701 million figure in 2021, while ASIC Deputy Chair Sarah Court attributed cryptocurrencies to the steep incline in investment scams over the last two to three years:
“Given this concerning trend, we want to arm Australians with the information they need to protect themselves from scammers,” she added.
As part of the advisory, ASIC stated that cryptocurrency scams fall into three categories. The first relates to scams where the victim believes to be investing in a legitimate asset, however, the crypto app, exchange, or website turns out to be fake.
The second scam involves fake crypto tokens used to facilitate money laundering activities, while the third type of scam involves the use of cryptocurrency to make fraudulent payments.
ASIC says top signs of a crypto scam include “receiving an offer out of the blue,” “fake celebrity advertisements” and being asked by a “romantic partner you only know on-line” to send money in crypto.
Other red flags include being asked to pay for financial services in crypto, being asked to pay more money to access funds, withholding investment earnings “for tax purposes” or being offered “free money” or “guaranteed” investment returns.
The markets regulator also said it was common for
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