Bitcoin

The Australian watchdog warns of fake celebrity-backed ads that are used to defraud cryptocurrencies

The Australian Securities and Investment Commission (ASIC) urges people to be careful about celebrity-backed Bitcoin fraud sites (BTC).

After the Commission’s public warning The Australian watchdog has received a number of allegations from fraudulent cryptocurrency websites that are said to be backed by prominent companies, new websites, and government agencies. Some even seem to have the support of national celebrities like Waleed Aly, Mike Baird, Dick Smith and Virginia Trioli.

Commercial bot fraud is active in Australia

The ASIC has described a number of examples as part of its warning. An example, Bitcoin evolution, a fake cryptocurrency trading bot. The same fraud website has been denounced by other countries such as the Philippines and Malta. Other similar scams operate under the names Bitcoin Revolution and Bitcoin Trader.

The Australian watchdog warns of fake celebrity-backed ads that are used to defraud cryptocurrencies
The Australian watchdog warns of fake celebrity-backed ads that are used to defraud cryptocurrencies

The Australian watchdog commented:

“These websites advertise with fake celebrity advertising messages that appear on social media websites such as Facebook, Instagram, LinkedIn and Twitter. When an investor clicks on the article or ad, they are often sent to a Mirror ‘website, a fake one Version of a legitimate news site like ABC News.

How do these pump and dump scams work?

The ASIC stated that fraudsters combine online search terms to generate fake news articles and social media ads that contain celebrity or media misrepresentations.

Online search engines and news sites often republish these articles or ads, which maintains the excitement and interest in these cryptocurrencies. This leads to a shopping frenzy, said the watchdog. Add:

“As more people buy this cryptocurrency, its value (‘pump’) increases and other traders stick to it, which further increases its price. Fraudsters then sell their own share of this now overvalued cryptocurrency (” dump “). that their value will decrease and the victims hope to recoup their initial investment. “

Australians recently submitted 1,810 reports of crypto-related fraud in 2019. Overall more than $ 21.6 million ($ 14.9 million).

According to a study by Scamwatch, a branch of the Australian Competition and Consumer Commission, Younger Australians aged 25 to 34 were the most affected by these cryptocurrency investment scams.

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