As cryptocurrency grows into a broader world of recognition and adoption, the scams related to them have also grown in equal measures. According to a report released by Australia’s Competition and Consumer Commission on April 29, the country has observed a 190% increase in cryptocurrency scams, wherein Australian consumers lose $6.1 million Australian dollars ($4.3 million) in 2018.
In comparison to AU$2.1 million ($1.48 million) loss in 2017, there has been a substantial rise despite the industry-wide slump in cryptocurrency prices. Reportedly, Australian authorities received 674 reports where crypto was used to pay scammers.
Most victims were targeted through investment scams, under which they were encouraged to purchase digital currencies or asked to make crypto payments for access to forex trading, commodity trading and other investment opportunities. The consumers only realized something was amiss when they unable to withdraw funds or contact the fraudster responsible, a total of AU$2.6 million ($1.8 million) was lost this way.