It's an understatement to say that Australians lost millions to scams since a new study has revealed that the actual amount lost to these scams amounts to over $2 billion in 2021. Criminals have caused Australian citizens to lose a lot of money on crypto scams, with the ACCC consumer watchdog finally sounding the alarm.
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Over $2 Billion was Lost to Scams by Australians in 2021
According to the story by News.com.au, the watchdog warned that criminals are now using cryptocurrency in order to defraud certain citizens to lose their hard-earned cash. The Australian Competition and Consumer Commission estimated that in 2021, over $2 billion was lost to these scams.
$701 million was reported lost to fraudsters pretending to give legitimate investment opportunities to victims. Another $227 million was reportedly lost in other payment prediction scams while certain people were tricked into paying certain accounts that looked legitimate.
$142 was Lost to Investment Scams as per the ACCC
Another $142 million was reported lost to investment scams. Delia Rickard, the ACCC deputy, noted that inheritance and lottery scams started to decline as criminals looked toward other methods of scamming consumers.
In an article by the Financial Review, she noted that they have seen a decline in some of the older, low-end scams. There was, however, an increase when it came to more sophisticated "white-collar" frauds, including crypto investment scams.
Crypto Started to become the Preferred Method of Payment Across Different Types of Scams
Rickard also noted in an article by Perth Now that should an investment opportunity seem too good to be true, they urge Australians to stay away from it. News.com.au noted that cryptocurrency "has become the preferred method of payment across scams."
The ACCC report stated that "urgent work" is needed in order to be able to fight against these types of cryptocurrency investment scams. Rickard also noted that she was "hopeful" regarding government consultation on certain approaches to regulation that started before the election that could potentially prevent the growth of these types of scams.
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65 Years Old and Above Reportedly Lost More Money on Different Types of Scams
It was also estimated that men lost twice as much as women when it came to these scams and that people that were 65 years old and above reported losing more money. The report also highlighted that losses steadily increased with age.
Rickard also noted that the "worry trend" of losses was reported by certain people that have experienced vulnerability. People that had disabilities made twice the number of reports compared to 2020, saying it increased by 43% according to the filing of First Nation.
Despite the ACCC increasing its work "with government agencies, domestic and international law enforcement, major banks and telecommunications providers," it was acknowledged by Rickard that the system still had too many gaps.
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Written by Urian B.
