'Don't Delay' - ASIC Warns Aussies to Look Out for 10 Signs of a Crypto Scam

The list is published as part of Australian Scam Awareness Week 2022.

Australia's market regulator has released a list of the "Top 10 Ways to Spot a Crypto Scam", amid a detected increase in crypto investment scams this year.

The Australian Securities and Investment Commission (ASIC) public notice has been issued as part of Scams Awareness Week 2022, an initiative that teaches Australians to identify all forms of scams. The campaign runs from November 7-11.

ASIC said Australians had already lost more to 'investment scams' in 2022 than the total figure of $701 million in 2021, while ASIC Vice President Sarah Court , attributed cryptocurrencies to the sharp increase in investment scams over the past two to three years:

The main driver of the increase was cryptocurrency investment scams, where losses increased by 270%. The ACCC reported that losses from crypto scams increased further in 2022. »

"Given this worrying trend, we want to equip Australians with the information they need to protect themselves from scammers," she added.

As part of the advisory, ASIC said that cryptocurrency scams fall into three categories. The first is for scams where the victim believes they are investing in a legitimate asset, however, the crypto app, exchange, or website turns out to be fake.

The second scam involves using fake crypto tokens used to facilitate money laundering activities, while the third type of scam involves using cryptocurrency to make fraudulent payments.

According to ASIC, the main signs of a crypto scam include "receiving an out of the blue offer", "fake celebrity advertisements", and being invited by a "romantic partner that you only know online" to send crypto money.

Other red flags include being asked to pay for crypto financial services, being asked to pay more money to access funds, withholding investment income” for tax purposes" or to be offered "free money" or "guaranteed" investment returns.< /p>

The market regulator also said it is common for scammers to pressure victims into transferring crypto to their website. To avoid this problem, ASIC has...