Australians lose $21.4m to investment fraud in first 9 months of 2017

Maria Nikolova

The amount of money that Australians reported lost to investment fraud in the January-September 2017 period was $21.36 million, with September marking smaller losses than August.

The amount of money lost due to the activities of investment fraudsters in Australia during the January-September 2017 period reached $21.36 million, according to the latest data from Scamwatch, a body operated by the Australian Competition and Consumer Commission (ACCC).

The total amount of money reported lost due to investment scams in Australia was $2.16 million last month, down from the record-high monthly losses of $3.95 million reported in August 2017. Let’s recall that the August record surpassed the previous record of $3.94 million in losses set in November 2015.

Source: Scamwatch.

During the first nine months of 2017, ACCC received 1,374 reports of investment fraud, with people aged 55-64 losing most money due to such schemes. New South Wales residents were the most active in filing reports and were the ones suffering the biggest losses.

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

The police have also intervened to help tackle fraudulent activities. The Queensland Police, for example, have recently launched an “R U in Control?” campaign targeting fraud. The campaign seeks to help Queenslanders avoid becoming a victim of cyber and financial crime.

“We are also seeing vulnerable Queenslanders targeted daily with cold call investment scams, malicious emails and fake website scams,” Commissioner Stewart said.

The biggest part of the losses due to cold calling in 2016 related to offers of investment opportunities in binary options, according to ACCC’s annual report on scam activity for 2016.

Estimates, quoted by the Queensland Police, show that organised crime costs the Australian economy $21 billion per year with $8.5 billion of that figure directly related to cyber, identity and corporate crime.

Read this next

Digital Assets

BlockTower teams up with Centrifuge to bring real world assets to DeFi

The protocol empowers businesses to tokenize non-crypto assets such as mortgages, invoices and consumer credit, to create asset-backed pools that create an investment opportunity, and as a result, democratizing access to capital.

Digital Assets

Solana-powered game DeFi Land launches Play-and-Earn features

The Play-and-Earn mechanics announcement comes on the heels of a collab between DeFi Land and STEPN. DeFi Land will soon announce chain integrations, an alpha mobile version, and a multichain feature. 

Retail FX

Spotware rolls out Manager’s API for cTrader brokers

Spotware Systems, a technology provider for the electronic trading industry, has released its new Manager’s API for Brokers, providing powerful tools for server-server integration.

Metaverse Gaming NFT

Dubai Museum taps Binance to jump onto NFT bandwagon

Dubai’s Museum of the Future, the $136 million UAE government-sponsored museum that opened a few weeks ago, is joining forces with Binance NFT to roll out a range of digital products on blockchain.

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets

Crypto.com enables Shopify merchants to accept crypto payments

Crypto.com has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

<