In a concerted effort to combat online investment fraud, the Australian Securities and Investment Commission (ASIC) has successfully removed 7,300 scam websites over the past year. These sites, including numerous crypto endorsements, were often proliferating through social media channels. ASIC has been actively targeting these fraudulent platforms since the launch of its anti-scam program in July 2023.
The crackdown on scam websites has been a significant focus for ASIC, which has dismantled approximately 20 scam sites per day in collaboration with the internet services company Netcraft. The removed sites included over 5,500 trading websites, around 1,000 phishing attempts, and 615 fake cryptocurrency platforms. This robust action is part of ASIC’s broader initiative to tackle the growing issue of investment fraud.
Despite these efforts, financial losses due to scams have remained substantial. According to the National Anti-Scam Centre, Australians lost a staggering $2.77 billion to scams in 2023. While financial losses have decreased by 13% compared to previous years, the number of reported scams has risen by 18.5%. This increase in reported cases suggests that while individual losses may be decreasing, the overall frequency of scams continues to rise, illustrating the ongoing challenge for regulators.
On a global scale, Chainalysis reported a 20% decrease in illicit blockchain activities in the first half of 2024. However, this decline is contrasted by a dramatic increase in the amount of stolen crypto funds, which surged from $857 million to $1.58 billion. The report also highlighted a modest rise in ransomware payments, although fewer victims are choosing to pay ransoms.
In the United States, "pig butchering scams"—a type of fraud involving fake investment opportunities—have seen a significant uptick. The FBI’s Internet Crime Complaint Center (IC3) reported a 38% increase in investment losses related to these scams in 2023. Out of the $4.57 billion stolen through scams, $3.96 billion was attributed to fraudulent cryptocurrency investments.
Similarly, the UK's National Crime Agency (NCA) noted in its August report that criminals are increasingly using cryptocurrencies for money laundering activities, shifting away from traditional cash methods.
ASIC's extensive efforts to eliminate scam investment sites demonstrate a strong commitment to protecting investors. However, the persistent rise in scam numbers and the substantial financial losses highlight the ongoing battle against fraud. Globally, while there is a reduction in some forms of illicit crypto activity, the overall picture remains complex, with significant increases in stolen funds and new types of fraud emerging. As regulators and law enforcement agencies continue to address these issues, both national and international efforts will be crucial in curbing the impact of investment scams and protecting consumers.
August 2024, Cryptoniteuae