Australian reports of Bitcoin-related scams rise 126% in one week

Maria Nikolova

The latest data from Scamwatch show a 126% jump in the number of reports about Bitcoin-related fraud in the week to October 29, 2017.

Scamwatch, the body operated by the Australian Competition and Consumer Commission (ACCC), has earlier today released its latest snapshot of existing and emerging scams targeting Australians. The data indicates a steep rise in the activities of fraudsters using cryptocurrencies to scam the public.

Scamwatch received a total of 77 reports about Bitcoin-related scams in the week to October 29, 2017, with the number up 126% from the previous week.

Source: Scamwatch.

A recent example of such a scam is an SMS saying that a person has a certain number of Bitcoins in his/her account and then asks the potential victim to check (log into) the account.

The numbers from Scamwatch are released shortly after the Australian Communications and Media Authority (ACMA) also voiced its concerns about the increased number of fraudulent schemes involving cryptocurrencies. ACMA warned the public of scams targeting people who use crypto currencies like Bitcoin and Ethereum. In particular, the authority noted a number of fake Blockchain URLs and a Bitcoin survey that are indeed scams that aim to collect personal information.

Meanwhile, the Australian authorities are on track to make legislative changes that will regulate cryptocurrency exchanges. In October, the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2017, also known as Australia’s “bitcoin bill”, got the green light from the Senate Legal and Constitutional Affairs Legislation Committee.

The “bitcoin bill” introduces changes to the current AML/CTF law by modernizing it to take into account digital currencies like Bitcoin. Under the bill, businesses that trade digital currencies for money, and vice versa, will be required to:

  • enroll and register with AUSTRAC;
  • establish, implement and maintain an AML/CTF program, which sets the framework for businesses to comply with their obligations, including customer due diligence requirements;
  • report threshold transactions and suspicious matters to AUSTRAC, and
  • keep appropriate records.

The bill proposes a maximum penalty of 7 years of imprisonment and a fine of 2,000 penalty units if the AUSTRAC CEO gave the person a direction in relation to violations of registration rules and accepted undertakings given by the person in relation to registration violations on numerous occasions.

  • Read this next

    Retail FX

    Lark Funding reopens to US traders, MyFundedFX picks cTrader

    Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

    Institutional FX

    Cboe FX volume falls to lowest level since summer

    Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

    Retail FX

    ThinkMarkets secures lucrative DFSA license in Dubai

    Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

    Digital Assets

    New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

    Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

    Digital Assets

    Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

    Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

    Digital Assets

    Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

    Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

    Institutional FX

    Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

    Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

    Industry News

    Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

    In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.

    Fundamental Analysis

    Global FX Market Summary: EUR, USD March 1st, 2024

    The ISM’s February Manufacturing PMI is expected to show a slight increase, but remain below the expansionary threshold, while inflationary pressures persist and a Fed rate cut in June is still possible.

    <