Australians lose $13.3 million to investment scams in H1 2017

Maria Nikolova

The highest number of reports was submitted by people who are 35-44 years of age, followed by those over 65 years of age, according to data by Scamwatch.

Australians continue to fall victim to various investment fraud schemes – the trend has been underlined by numbers provided by Scamwatch, which is run by the Australian Competition and Consumer Commission (ACCC).

Scamwatch’s statistics for the first January-June 2017 period show that Australians lost $13,286,444 to investment scams in the period in question. The number of reports submitted to the ACCC during the six-month period was 910, with those between 35 and 44 years of age being the most active in reporting fraud, followed by people aged over 65.

In the six-month period, May was the month with the biggest losses reported by defrauded Australians – $3.21 million, followed by February – $2.98 million.

Let’s note that the trend seems to continue in July, as the first week of this month (July 3 – July 9) saw Australians lose $650,000 to fraudulent investment schemes.

The latest results are in tune with the findings in ACCC’s annual report on scam activity for 2016, which shows a rise of 47% in the number of scam reports in 2016 compared to 2015. Losses due to investment scams amounted to $23.6 million last year.

The numbers are not conclusive because many victims do not report their experiences. In 2016, the ACCC and the Australian Cybercrime Online Reporting Network (ACORN) got a total of 200,103 reports about scams. Losses reported to Scamwatch, ACORN and from other scam disruption programs total approximately $300 million.

Most of the losses due to cold calling related to offers of investment opportunities in binary options, the report noted.

The ACCC is pushing for putting an end to scams. Its Scam Disruption project continues, with more than 2,834 letters sent to potential scam victims in 2016. Of those people that got a letter, 74% stopped sending money within six weeks. Last year, the ACCC also started collaborating with financial institutions, telecommunication providers and Facebook to put in place better scam prevention systems to make it harder for scammers to access victims or receive money from them. This work is poised to continue in 2017.

Read this next

Web3

US arrests Yune Wang for role in 911 S5 botnet scam

A global malware network, linked to the theft of $5.9 billion in Covid relief funds and crypto crimes, has been dismantled, the Department of Justice (DOJ) announced today. The network was also involved in child exploitation, bomb threats, and various cyberattacks.

Digital Assets

US Treasury official clarifies stance on crypto mixing services

The Financial Crimes Enforcement Network (FinCEN) proposed a rule last year to classify convertible crypto mixing as a “class of transactions” with primary money laundering concerns.

Fintech

Robinhood sweetens US crypto offering with trading API

Robinhood has launched a cryptocurrency trading application programming interface (API) for users in the United States. The new API caters to seasoned crypto traders by enabling automated trading strategies, allowing users to react quickly to market movements and trends.

blockdag

After Retik Finance’s 67% Drop, Investors Turn to BlockDAG’s 30,000x ROI Potential to Recover Their Losses

Explore how BlockDAG’s $37M presale is drawing investors while Retik Finance collapses to $0.403.

Digital Assets

Terraform Labs and co-founder Do Kwon reach settlement with SEC

Terraform Labs and its co-founder Do Kwon have reached a “settlement in principle” with the U.S. Securities and Exchange Commission (SEC) regarding a fraud case, according to a court filing on Thursday.

Market News, Tech and Fundamental, Technical Analysis

FTSE 100 Index Technical Analysis Report 30 May, 2024

FTSE 100 Index can be expected to rise further toward the next resistance level 8325.00, which reversed the price earlier this month.

Chainwire

Sui and Atoma Bring the Power of AI to dApp Builders

The integration of Atoma adds new capabilities to Sui’s flourishing developer ecosystem with unique AI-querying capabilities.

Digital Assets

Talos incorporates DeFi with Skolem acquisition

Talos has acquired Skolem to enable clients to incorporate DeFi into their workflows in a move that sets a new standard for the digital asset OEMS and PMS.

<