Increasing number of Cryptocurrency Scams in Australia

How does the increase in the number of crypto frauds affect Australia

Australia can be called one of the most developed countries in the field of cryptocurrency. And it is not casual. The local population very quickly joined the use of new digital currencies, and now across the country, there are many places where you can pay with cryptocurrency. And every year their number increases. Due to this attitude to cryptocurrency, Australia is considered to be a country with one of the widest cryptocurrency markets.

However, this rapid development in the use of cryptocurrencies has led to the development of so-called crypto-scams. Alas, according to CNN, their number has increased 190% in the past few years. Because of this, the financial security of the population is under threat, because the scammers each time become more sophisticated in their attempts to deceive people and illegally get their funds.

Methods of deception. Fake casinos

Most often cases of fraud occur on the Internet, in the field of gambling. Many casino fans sometimes lose their money, not in case of simple bad luck, but simply become victims of scams. So, how does this scheme work? Very simply. Fraudsters create sites under the guise of a foreign legal casino and even attach documentation that confirms the legality of such a gambling establishment. But all this turns out to be fake. Further, players use the e-wallet to transfer their funds to the casino account. And the “game” ends.

Many scammers go further and do not stop at small amounts. They create the illusion that players are playing, as a result of which they contribute even more funds to the casino account. They cannot withdraw cryptocurrency if it remains in the account.

Another difficulty lies in the fact that in Australia such gambling sites are controlled by local authorities. In addition, all gambling establishments must comply with the strict rules of gambling, which are established by local legislation. That is why foreign casino platforms have become more attractive for players.

Pseudo investments

Another very common method of fraud is an investment. According CNN, this is the second most common fraud method in Australia. With the development of cryptocurrencies, everyone is trying to get the opportunity to multiply their finances, and try themselves on various stock exchanges, work with various brokers, etc.

The essence of such fraud is also simple. Another cryptocurrency is created, which is promoted by means of aggressive marketing or a simple well-known HYIP. Many trusting “investors” believe in the bright future of the new cryptocurrency, in the hope that it will take its place in the market, due to which investors will receive a long-awaited profit.

As a rule, the funds transferred to the fraudsters’ account can no longer be returned in any way. It’s all about the blockchain system itself, which makes all transactions of funds anonymous. And as a result, it is impossible to track the fraudsters and return the funds to the deceived depositors.

Alas, no one is immune from this. To avoid falling into the trap of scammers, one needs to understand how bitcoin transactions work.

Consequences of fraud in Australia

In 2018, the statistics of fraud hits all records. Over the past year in Australia, it was announced about 1000 times about the case of fraud in the field of cryptocurrency. This was stated by a special Australian institution, namely the Competition and Consumer Commission. However, some of the reports were made by other government agencies.

With regard to the data from these reports, the following amounts were claimed: As a result of fraud with cryptocurrency, the population suffered damage in the amount of 6 million Australian dollars, which is equivalent to 4.5 million US dollars. The amount lost as a result of fraud in 2018 is 35% higher than in 2017. However, these figures may have a larger scale, as perhaps not all victims of fraud decided to declare fraud.

Also, according to statistics, the victims of fraud are people of average age (25 to 36 years). The number of deceived men on indicators – more than half.

How to deal with such fraud

As can be assumed, such indicators of fraud have caused discontent among the population. Many residents believe that the government does not care enough about financial security. However, the government for its part felt that young Australians do not have enough knowledge in the field of Finance, and are less competent in matters of investment and other financial transactions.

This was the main reason for the fact that the government intends to increase the literacy of the population in the field of Finance in order to prevent the further spread of scams that set traps for gullible owners of cryptocurrencies.

As for the legal regulation of this issue, many authorities consider the amendments to the legislation to be less effective than the improvement of the General level of education of the population. As mentioned earlier, this is due to the complex blockchain system. Because of the anonymity of transactions, it will be quite difficult to organize appropriate ways to regulate actions with the cryptocurrency.

How to protect yourself from fraud

No matter how hard the government tries to stop all attempts at fraud, it will never be able to completely overcome this problem if Australians do not reach a certain level of consciousness and learn to think critically. Everyone should be able to protect themselves, and not to trust their funds to questionable organizations.

All that we can advise you is to check all the information about casinos and brokers you are going to work with. Also, you should have some experience and knowledge about cryptocurrencies and finance processes.

Fundamental principals of trading the financial markets will help you to be more successful and do not lose your money.

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