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

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”

Digital Assets

BingX publishes Proof-of-Reserve report by auditor Mazars to address general distrust in crypto

“It is our responsibility to help our customers know their platform and feel safe. They should only trade in regulated and licensed exchanges or one showing them proof when they need it.”

<