Australia Takes Down 600 Cryptocurrency Scams
19 Aug, 2024 ● Vijesti o kovanicama
Australia’s financial markets regulator announced that it has dismantled over 600 crypto scams in the past year, highlighting that fraudsters in the crypto space, often utilizing artificial intelligence, are continually refining their methods to deceive consumers.
In an Aug. 19 statement, the Australian Securities and Investments Commission (ASIC) disclosed that since July 2023, it has taken down more than 5,530 fake investment platforms, 1,065 phishing links, and 615 cryptocurrency investment scams.
ASIC Deputy Chair Sarah Court expressed particular concern about deepfakes and other AI-generated images, which she believes have made it more challenging for the average person to identify scams.
“The scams landscape is rapidly evolving. Innovative technology developments may improve how we live and work, however, they also provide new opportunities for scammers to exploit,” she said.
She pointed out that, on average, 20 investment scam websites are taken down daily, and these scams continue to be the leading cause of financial losses for Australians, totaling $1.3 billion in 2023.
“Fake celebrity endorsements, including from people such as Chris Hemsworth and Elon Musk, are used in these scams to entice consumers to enter into investments with low initial costs and unrealistic returns,” ASIC stated, and continued:
“Ask yourself if you really know what you are investing in. Scammers can create fake news and reviews to make an investment seem legitimate.”
Tesla CEO Elon Musk’s likeness and voice are among the most popular choices for AI-driven crypto scams.
On June 6, over 35 YouTube channels live-streamed an AI-generated fake voice of Musk, falsely promising to double the amount of crypto for those who deposited in the scheme.
The Bitcoin Way, a Bitcoin consulting firm, reported another instance of an AI scam using Musk’s voice on July 27.
In July, ASIC identified a suspicious crypto investment firm named Dexa Trade Markets, which falsely claimed to be internationally regulated, boasting billions in trading volume and millions of investors.
ASIC’s investor alert noted that Dexa Trade Markets does not hold the necessary licenses to operate in Australia.
In January, SingularityNET CEO Ben Goertzel suggested that AI could also help combat crypto scams by generating customized summaries of crypto entities’ reputations, using raw data and reports from various sources.
While Goertzel acknowledged that such tools might not prevent all crypto scams, he believes they could at least help alert consumers to the many red flags in a more accessible format.
Meanwhile, fake crypto ads have become a significant concern.
The Australian Competition and Consumer Commission (ACCC) recently claimed that over half of crypto ads on Facebook are either scams or violate Meta’s policies, based on preliminary research.
Meta, Facebook’s parent company, has disputed these claims, arguing that the data is outdated and that it has since implemented measures to address these issues.
Sources:
https://cointelegraph.com/news/australia-regulator-600-crypto-scams-ai-will-make-it-worse
https://www.accc.gov.au/system/files/targeting-scams-report-activity-2023.pdf
