Aussies Lose Big in Cryptocurrency Scams

Cryptocurrency scams are happening all over the globe. However, Aussies lost a significant amount of cryptocurrencies last year. The total amount stands at US$ 2.1 million. This includes the amount which had to be paid via ransoms or the amounts which are lost fake ICO’s. This is an upgrade to the last figures which indicated that the amount only stood at $ 0.8 million. However, for the reports clearly stated that the amount which was lost is even more.

Earlier reports also indicated that Australians lost only $ 1.3 million related to Bitcoin and Ethereum scams. However, these did not include the ICO scams. As a result, the total amount which was lost by Australians is much higher. Moreover, not each and every loss is actually tracked that is why the figure can stand even higher.

According to a formal report which was released today, the losses in fake coins, as well as cryptocurrency related losses, are even higher. Moreover, there are many fake coin offerings in which Australians invested a significant amount according to Australian competition and consumer commission. As a result, the total amount is much higher. In many of the cases, people did not buy cryptocurrencies themselves as they were not aware of the exact workings of the cryptocurrency. As a result, they used some other services in order to buy cryptocurrency. As a result, they often got caught in pyramid schemes or whether cheated while buying cryptocurrencies. That is why the amount is actually so high. Last time Australia also warns its citizens of the scammers who have been collecting extra charges in Bitcoin.

According to Australian securities and investment commission, many ICO’s raised funds and thereafter disappeared. As a result, the tokens did not have any value. Thus, the investors lost a significant amount of money by investing in these ICOs as well. This was another reason why Australians have lost a significant amount of money.

All over the world, such scams are increasing at a rapid pace. This is the reason why the number is so staggering. Also, this is the number just for Australia. Investors from other countries have also lost a significant amount of money by participating in fake ICO schemes as well as in hacking-related losses. Moreover, in many cases, wallet hacking also resulted in losses of a significant amount. This is the reason why such significant losses occurred. It is up to the authorities to create a proper regulatory framework so that such losses do not take place. With the increased scrutiny, a significant portion of these cryptocurrency losses can be avoided.