Since 2023, Australian authorities have cracked down on approximately 14,000 scams, with a significant portion, 21%, involving fake cryptocurrency investments. These efforts reflect an increasing focus on combating sophisticated online scams that target Australians.

The Scope of the Problem

Scams have become a pervasive issue in Australia, affecting individuals and businesses alike. In 2023-24, over two million Australians experienced card fraud, and 675,000 responded to a scam. While many card fraud victims receive full reimbursement from their card issuers, the net loss to victims after reimbursements totaled $477 million. The number of Australians falling victim to scams is also on the rise, increasing from 2.5% in 2022-23 to 3.1% in 2023-24.

Types of Scams

The Australian Bureau of Statistics (ABS) has identified buying or selling scams, including false billing and online shopping scams, as the most common, affecting approximately 308,000 Australians. Other prevalent scams include information request or phishing scams. Investment scams, romance scams, payment redirection scams, remote access scams, and phishing scams jointly account for over 70% of total reported losses.

Cryptocurrency scams have emerged as a particularly concerning category. The Australian Cyber Security Centre (ACSC) reported that Australians lost $382 million to investment scams in the 2023-24 financial year, with nearly half of those losses involving cryptocurrency. These scams often target inexperienced investors and lonely individuals, luring them with promises of high returns on fake trading platforms.

Government and Law Enforcement Response

The Australian government has been actively working to combat scams through initiatives like the National Anti-Scam Centre. This center combines data from various sources, including Scamwatch, ReportCyber, and the Australian Securities and Investments Commission (ASIC), to provide a comprehensive picture of scam activity in Australia. ASIC has also been proactive in shutting down investment scam websites, taking down an average of 130 such sites each week since establishing its capability in 2023.

The Australian Federal Police (AFP) has also been involved in disrupting offshore scam centers that target Australians. In one operation, the AFP worked with Thai authorities to shut down a scam center in Bangkok, arresting 13 people, including five Australians. The syndicate was allegedly responsible for defrauding Australians of millions of dollars through a sophisticated investment scam.

Trends and Challenges

Despite efforts to combat scams, scammers are constantly evolving their tactics, using AI, deepfakes, and sophisticated impersonation techniques to target Australians. AI-driven impersonation scams involve scammers using AI to create deepfake videos and voice clones of celebrities, government officials, and even loved ones to promote fake investment opportunities or solicit personal information.

Another emerging trend is "pig butchering," romance investment scams where scammers build fake online relationships before convincing victims to invest in phony cryptocurrency platforms. Once the victim invests, the scammer disappears with the funds.

Protecting Yourself

To protect themselves from scams, Australians are encouraged to be cautious of online relationships that progress rapidly and to never send money or invest based on the advice of someone they have only met online. It is also important to be skeptical of unsolicited investment opportunities, especially those involving cryptocurrencies. Always verify requests for money or sensitive information through a separate, trusted communication channel. The Australian Competition and Consumer Commission (ACCC) Deputy Chair Catriona Lowe urges Australians to report scams to help keep everyone safe, emphasizing that intelligence gathered from these reports is a crucial weapon against scammers.