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The Australian watchdog warns of increasing crypto scams during the coronavirus pandemic

June 24, 2020

The Australian Securities and Investment Commission (ASIC) has determined this During the corona virus pandemic, there has been a sharp increase in investment fraud and has pointed to cryptocurrency fraud as a particularly worrying issue.

According to reports, between March and May 2020, Investment fraud all kinds increased by 20% compared to the same period last year, as per the June 24 ASIC announcement.

It appears that Criminals are trying to take advantage of economic uncertainty that many citizens face during the crisis. Warren Day, Executive Director of Assessment and Intelligence at ASIC, warned of fraudsters They “use old tactics in new and sophisticated ways to attack people”.. He added:

“The ASIC is particularly concerned about the risk of consumers and investors losing money buying counterfeit crypto assets. Most of the crypto investment opportunities reported to the ASIC appear to be obvious frauds, and there is no real underlying investment.”

Lost money due to fraud can be difficult to recover

The Australian watchdog warns of increasing crypto scams during the coronavirus pandemicThe Australian watchdog warns of increasing crypto scams during the coronavirus pandemic

While reports of fraud have provided the watchdog with “valuable information,” the ad warns readers of this Fraudsters, especially those who work abroad, are difficult to catch. As a result, consumers and investors may not be able to recover their lost funds.

The ASIC urges the victims submit their financial and investment fraud reports.

Typical features of suspicious fraud are a series of investment offers that “sound more secure than they are”. Money payment requests to people or companies that use multiple bank accounts or are constantly changing, false comments from celebrities or public bodiesincluding the ASIC itself and Strategies circulate through Online dating sites.

Fear and insecurity

The ASIC is not the first international government agency to raise concerns about the evident Cryptocurrency fraud increase during the COVID-19 crisis. Since the pandemic began, the United States FBI, the British Financial Conduct Authority and regional councils, and the United States Commodity Futures Trading Commission have warned of fraud attempts by fraudsters. Use the climate of fear and insecurity.

However, data released in April by Chainalysis, the forensic blockchain company, showed this Median value of transactions received from fraud wallets identified as cryptocurrency related decreased by 30% in March.

Chainalysis partially attributed this to the impact of the cryptocurrency market crash in mid-March, arguing Concerns about COVID-19 fraud can be exaggerated.

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