Australia Shut Down Over 600 Scam Crypto Sites in the Last Year

Highlights:

• Since 2023, Australia’s ASIC has shut down 7,300 websites, including crypto investment scams.
• Australians lost $2.77 billion to scams over the past year.
• Chainalysis reports a 20% drop in global illicit blockchain activity in early 2024.

In an Aug. 19 statement, the Australian Securities and Investment Commission (ASIC) revealed that it has been actively shutting down numerous scam websites promoting fraudulent investment opportunities, including fake trading platforms and crypto investments.

Since July 2023, our website takedown capability has disrupted over 7,300 phishing and investment #scam websites https://t.co/fNkLpjPIZZ pic.twitter.com/IEvHKeMJ6f

— ASIC Media (@asicmedia) August 18, 2024

Since July 2023, the regulator has helped remove over 5,500 fraudulent investment sites, more than 1,000 phishing links, and 615 crypto scam websites. On average, ASIC takes down around 20 scam websites daily with the help of internet services company Netcraft, but scammers keep adapting and finding new ways to deceive victims.

The statement read:

“ASIC reminds all consumers to remain vigilant to social media hyperlinks that promote online trading and cryptocurrency investments.” 

Australians’ Continued Vulnerability to Scams

ASIC deputy chair Sarah Court mentioned that Australians continue to lose billions of dollars annually to scams. She said, “Scammers are criminals targeting the hip pockets of hard-working Australians—they don’t discriminate, and they use sophisticated techniques to steal information and money.”

The National Anti-Scam Centre reports Australians lost $2.77 billion to scams in 2023. Although financial losses decreased by 13%, reported scams increased by 18.5%. The regulator acknowledges that combating scams is like a game of whack-a-mole.

Moreover, Australian law enforcement agencies recently discovered over 2,000 compromised crypto wallets, revealing the widespread nature of cybercrime in the digital asset sector. These findings stress the need to enhance cybersecurity to safeguard investors’ assets.

Meta’s Crypto Ads Misuse Celebrity Images and Deceive Users

In a related development, Australia’s competition watchdog disclosed that over half of the crypto ads on Meta’s platform deceive users or breach the company’s advertising policies. These deceptive ads often misuse the images of prominent Australians like Dick Smith and James Packer. They also feature Hollywood stars like Mel Gibson, Nicole Kidman, Chris Hemsworth, Russell Crowe, and Mike Baird.

【Australian regulator claims 58% of crypto ads on Facebook are scams】

Over half of crypto ads on @facebook are either scams or violate Meta’s policies, according to Australia’s competition watchdog — citing preliminary research.

In 2022, the Australian Competition and… pic.twitter.com/XbkhT5sHiZ

— MetaEra (@MetaEraHK) August 15, 2024

In 2024, Australia saw more than 3,400 reports of investment scams, leading to losses exceeding $78 million. The competition watchdog has identified approximately 600 ads that may violate Meta’s advertising guidelines, with 234 ads currently under close scrutiny. As investigations continue, authorities expect to uncover more deceptive advertising cases in the crypto sector.

Global Scams Decline as Legitimate Activities Rise

Chainalysis reported a 20% drop in illicit activities related to blockchain in H1 2024. However, stolen crypto funds have doubled from $857 million to $1.58 billion. Payments related to ransomware have seen a slight rise, although the report indicates a decrease in the number of victims paying ransoms. The blockchain analysis firm reported that crypto criminals are shifting from decentralized platforms to centralized exchanges, using advanced social engineering tactics in more sophisticated attacks.

Meanwhile, “pig butchering scams” have surged in the US, with the FBI reporting a 38% increase in investment losses for 2023. The report shows that out of $4.57 billion stolen, $3.96 billion came from fake crypto investments. The UK’s National Crime Agency (NCA) reported in August that criminals are increasingly using cryptocurrencies to launder illegal money instead of cash.