How to Report a Crypto Scam in Australia
Cryptocurrencies, such as Bitcoin or Ethereum, are digital assets that can be used to buy goods and services online. They are also popular investments, as their prices can go up and down quickly. However, crypto investments are very risky and volatile, and there are no guarantees that you will make money or get your money back.
Unfortunately, there are also many scammers who use cryptocurrencies to trick people and steal their money. Crypto scams can take different forms, such as fake trading platforms, fake crypto products, fake crypto jobs, or requests to pay in crypto for various reasons. Scammers use crypto because it is hard to trace and recover once it is sent overseas.
If you are interested in investing in crypto, or if you already have some crypto assets, you need to be careful and watch out for potential red flags. Below we will explain how to spot a crypto scam, how to report a crypto scam, and how to recover from a crypto scam in Australia.
How to spot a crypto scam
Here are some signs that you may be dealing with a crypto scammer:
Unexpected contact
Someone you don’t know contacts you with investment advice or offers through phone, email, social media, text message, or online forum. They may claim to be an investment manager, broker, or expert in crypto.
Recommendations from someone familiar
You may hear about a crypto opportunity through an advertisement, a fake celebrity endorsement, an online influencer, a family member, a friend, or an online romantic partner. They may tell you that they have made huge profits or that you can get free money by investing in crypto.
Pressure to take action
You are being pushed to transfer your crypto to another platform, use crypto to pay for something or someone, download an app that is not listed on official stores, deposit money into different bank accounts, or invest more money to access your funds.
Something doesn't feel right
You are not sure about the crypto offer, the service provider, the token, the document, or the website. You may notice that the offer is too good to be true, that the service provider is withholding your money for tax purposes, that the token is unknown or poorly described, that the document is poorly written or non-existent, or that the website is unsecure or fake.
If you notice any of these signs, you should stop and think before you invest or send any money. Do some research on the offer, the service provider, and the token. Check online reviews and ratings. Compare the offer with other similar ones. Ask questions and seek independent advice. Don’t let anyone rush you or pressure you into making a decision.
How to report a crypto scam
If you think you have been scammed or targeted by a crypto scammer, you should report it as soon as possible. Reporting a scam can help prevent others from falling victim to it and help authorities track down and stop the scammers.
Here are some steps you can take to report a crypto scam in Australia:
- Report the transaction(s) to your bank or financial institution. They may be able to stop or reverse the transaction if it has not been completed yet.
- Report the scam to ReportCyber, a national online system for reporting cybercrime incidents.
- Report the scam to Scamwatch, a service run by the Australian Competition and Consumer Commission (ACCC) that provides information and advice on scams.
- Report the scam account to the social media or other platform they used to engage with you. They may be able to block or remove the account and warn other users about it.
- Report the scam to ASIC, the Australian Securities and Investments Commission, which regulates financial markets and services in Australia.
- Report the scam to IDCARE, which is a free government-funded service that provides support and advice for victims of identity theft and cybercrime.
How to recover from a crypto scam
If you have lost money or personal information to a crypto scammer, you may feel angry, embarrassed, or hopeless. However, you are not alone and there are ways to recover from a crypto scam.
Here are some steps you can take to report a crypto scam in Australia:
- Contact your financial institution to secure your financial accounts. They may be able to help you freeze your accounts, change your passwords, cancel your cards, or set up alerts.
- Contact any other services that use your personal identity documents (e.g., ATO or Services Australia) to secure your accounts. They may be able to help you update your details, verify your identity, or protect your benefits.
- Contact a credit reporting agency to see if any attempts to open accounts in your name have been made. They may be able to help you place a ban or a correction on your credit report or monitor your credit activity.
Conclusion
Crypto scams are becoming more common and sophisticated as cryptocurrencies become more popular and accessible. If you are interested in investing in crypto, or if you already have some crypto assets, you need to be careful and vigilant. Don’t let scammers take advantage of your curiosity, greed, or fear.
Remember to spot, report, and recover from a crypto scam in Australia by following the steps we have outlined in this blog post. And remember that if something sounds too good to be true, it probably is.
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If you’re a victim of identity theft, cyber crime, or another scam, contact us today to learn about the tools and resources available to assist in resolving your claim.
