The Australian Securities and Investments Commission (ASIC) released a document titled “Top 10 ways to spot a crypto scam.” The government aims to raise citizens’ awareness of how to protect their cryptocurrency assets.
In support of Scams Awareness Week 2022, the Australian regulator released a special document that aims to “arm Australians with the information they need to protect themselves from scammers.”
According to Sarah Court, ASIC Deputy Chair, Australians lost over $700 million to “investment scammers” in 2021, and this year’s figure is already much higher. The number of scam crypto websites is actively growing in 2022. Studies have shown that about 15 suspicious smart contracts are created every hour.
In a released document, ASIC analysts identify three main schemes for cryptocurrency scams:
- Creating fake apps or websites.
- Offering fake assets for trading.
- Using crypto to make payments for fake goods or services.
ASIC researchers pointed out ten signs crypto users should pay attention to, the number of which is rapidly growing in Australia. So, the following factors can signal that a crypto project is fraudulent:
- a completely unknown contact offers to make a profit, although the user didn’t make such a request;
- involving celebrities and opinion leaders to promote the project;
- offering to invest in the crypto project from a person you have a romantic relationship with online;
- a need to transfer cryptocurrency from the crypto exchange to a third-party service;
- the investment app isn’t available on Google Play and App Store;
- requiring additional funds to access one’s investment;
- “guarantees” of return on investment;
- receiving new unidentified tokens to a crypto wallet;
- the provider withholds investment earnings “for tax purposes”;
- having to pay for a financial service specifically in crypto.
Sarah Court also explained how users should act if they suspect a scam scheme:
- immediately stop any investment in the suspicious project;
- block all contact from the scammers;
- warn family members about the possible scam;
- block the possibility of withdrawal of funds through any financial institutions;
- report the scam to the Australian Competition and Consumer Commission (ACCC).
CoinsPaid Media recommends readers get acquainted with the list of popular cryptocurrency scams and learn about the biggest ones in 2022.
