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How is Digital Coin Fraud Ranked Second In Australia?

How Is Digital Coin Fraud Ranked Second In Australia?

In Australia, cryptocurrency fraud has been ranked the second most common type of scam for investment in the last 12-month period as per consumer watchdog. A number of countries have been discouraging the use of virtual assets in their countries. Still, some enterprises float crypto-associated funds to attract the attention of investors and promise them higher returns for their investments.

Scam-Alert Domain

In Australia, independent government authority has been entrusted with the responsibility of executing consumer protection laws. The same authority is also mandated to monitor into any trend of scam-associated in the country. Significantly, the Australian Competition and Consumer Commission (ACCC) have a specific tool, i.e., scam-alert domain, that is known as ‘Scamwatch’ to monitor it. The watchdog came out with a fresh warning on Monday on the constant alert radar raising public caution due to the increasing trend of binary option and digital currency trading scams.

In the last one year period, scams involving digital currencies have witnessed significant growth, reported. The ACCC believes that this led to becoming the second biggest investment scam offer that is thrust on victims. In its earlier warning in November last year too, the watchdog disclosed about a whopping 126 percent surge in bitcoin-associated scams. Incidentally, that coincided with the Bull Run on the virtual asset market that lasted till the end of the last year. That also suggested the growing risk factor from the digital currencies.

ACCC deputy chair, Delia Rickard, said in a statement, “The rise in popularity in cryptocurrency trading has not been missed by scammers who are latching onto this new trend to con people. These are similar to any other investment scam: the scammer will claim to have inside knowledge about price movements they will use to make you a fortune. If you invest, your money will quickly disappear.”

She advised the Australian investors to be careful and be wary of schemes involving virtual assets. She did not want the country’s citizens to be tricked by any gimmicks like ‘get-rich-quick’ or “low risk, high return” and ‘low risk, high return.” The ACCC has also confirmed that schemes are reportedly offering investments in areas like conventional investment market continued to record the big majority of investment scams in the country. Conventional investments included stocks, real estate, and commodities.

Total Complaints

A few months back, the ACCC disclosed in its annual report that as much as 200,000 scam reports were given to the authority. The accumulated losses from these were about A$340 million that are digital currency-associated one. This included fake initial coin offerings (ICOs) through its loss is only A$2.1 million. However, it was only a tip of the iceberg.

In 2017, the ACCC disclosed about 1,289 complains that were linked with virtual currency from its countrymen. However, the total losses were only modestly higher than A$1.2 million. Before this year, the digital currency sector was largely unregulated, and the regulators are now engaged in tightening the noose.