Investment scams continue to gather pace in Australia

Maria Nikolova

Australians reported $1.2 million lost to investment scams in the week to June 24th, according to data from Scamwatch.

The latest weekly numbers from Scamwatch, a body operated by the Australian Competition and Consumer Commission (ACCC), have just been released, with investment scams once again gaining pace.

Investment schemes were among the top scams targeting Australians – during the week from June 18 to June 24, 2018, Australians reported losses of $1.18 million due to such fraud. False billing scams were also among the most widespread fraudulent schemes.

The latest data is in line with the numbers for May 2018, which have also indicated a rising trend of investment scams. Australians reported losses of $5.8 million due to investment scams for May 2018, with 429 reports about such fraud submitted. These are the highest monthly losses caused by investment scams on record, taking the amount lost by Australians as a result of investment scams since the start of this year to more than $21.8 million. Previous records were set in November 2017 and February 2018.

A type of investment fraud that is currently gaining momentum in Australia involves cryptocurrencies. In March this year, Consumer Affairs Victoria, a business unit of the Department of Justice & Regulation, within the Victorian government, voiced its concerns about Bitcoin scams. Victoria’s consumer regulator said it had received reports of people being defrauded through fake Bitcoin websites. The average amount lost is not that large – around $300, but the body sees this type of fraud as worrisome.

In the meantime, the Australian authorities continue to remind cryptocurrency exchange platforms that they are now subject to new regulatory requirements and need to register with AUSTRAC. The registration of such a business with AUSTRAC, however, does not constitute endorsement.

Read this next

Executive Moves

Stash appoints Liza Landsman as CEO to further grow investing app

Stash is an investing and banking app with over 2 million active subscribers. Its subscription plans start at just $3 a month, and offer a range of products including investing, banking, education, and advice.

Institutional FX

Invast Global ramps up its offering with 10 soft commodity CFDs

Sydney-based prime-of-prime provider Invast Global has expanded its offering with the addition of ten soft commodity CFDs, which increases their index and commodity CFD offering to 35 instruments.

Retail FX

FF Simple and Smart Trades says Goodbye to CySEC authorization

The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of FF Simple and Smart Trades Investment Services Ltd.

Crypto Insider

Shining the Light in Crypto’s Dark Places

Something changed in regulators’ minds after the November crash of the FTX crypto exchange.

Executive Moves

Financial Commission Adds Sam Low to Dispute Resolution Committee

The Financial Commission (FinaCom PLC), a dispute resolution service that caters to the financial services industry, has appointed Sam Low as the newest member of its Dispute Resolution Committee (DRC).

Digital Assets, Uncategorized

De-facto owner of Bithumb exchange arrested in South Korea

South Korean prosecutors have arrested Kang Jong-Hyun, the anonymous chairman and owner of the country’s largest cryptocurrency exchange, Bithumb, on charges of embezzlement and stock manipulation.

Retail FX

Interactive Brokers volumes snap three-month losing streak

Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes rose in January, an indication that investor confidence in the financial markets is rebounding after having been fairly mixed over the past few months.

Digital Assets

VVF invests $5 million in Everscale, a potential Layer 2 solution for Venom blockchain

“For us, this is a strategic investment aimed at the technological development of projects and teams around technologies that we focus on and actively develop. In particular, we are talking about the Venom blockchain project and its ecosystem, which is planned to be launched soon and for which Everscale is a potential Layer 2 solution.”

Institutional FX

FXSpotStream volume ends string of declines on January rebound

Trading volumes on institutional FX platforms surged in January as traders increased their bets on central bankers’ policy with evidence mounting that inflation and economic growth are both losing momentum.

<