Cryptocurrency has grown in popularity in recent years, but so have cryptocurrency frauds. In 2022, Australians were victims of crypto fraudsters who stole a whopping $3 billion. Scammers stole nearly $38 million in only one month in June 2023, as the situation deteriorated. This is pretty terrible news since it indicates that a robust crypto-hacking ecosystem is developing in Australia.
According to a report from the Australian Financial Crimes Exchange (AFCX), these scammers were using cryptocurrency exchanges to transfer stolen assets. This has alarmed experts and authorities, who are now encouraging banks and exchanges to collaborate to tackle these scams.
One of the most difficult things you can do is recover monies stolen through cryptocurrency exchanges. This results in even larger financial losses for those who are affected. The AFCX’s David Pegley and the Australian Banking Association’s Anna Bligh both agree that something needs to be done. The situation has genuinely deteriorated to the point that action is required.
Ideas have been made to prevent Bitcoins from being used for money laundering. Limiting the amount of money that can be sent to bank accounts linked to crypto exchanges is one recommendation. Scammers may find it more difficult to exploit the system in this manner. This could eventually limit the process of crooks funneling funds through cryptocurrency.
Meanwhile, efforts are being made to make cryptocurrency exchanges safer. Some banks have restricted payments to high-risk exchanges, and efforts to regulate platforms like Binance are ongoing. They lately encountered regulatory hurdles.
NEWS: 🇦🇺 Reports show that in 2022, #Australians were victims of crypto fraudsters who stole a whopping $3 billion.
— Walletor (@walletorapp) August 17, 2023
While it is critical to safeguard Australians from scammers, a balance must also be struck. Blockchain Australia, an organization that promotes the technology that underpins cryptocurrency, concurs. Moreover, they underline that anti-scam efforts should not disproportionately affect individuals who properly use cryptocurrencies.
Finally, as the use of cryptocurrencies rises, so does the necessity to protect against scams. By bringing banks and exchanges together, imposing transfer limits, and devising balanced solutions. By doing so, Australia hopes to keep its citizens safe from cryptocurrency scammers,