The Australian Government Reported on Fraud in the Cryptocurrency Area

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According to the annual official report of the ACCC, published on May 21, in 2017, scammers stole about 2.1 billion dollars from Australian users in the cryptocurrency market.

The ACCC report reports that the activity of fraudsters in the cryptocurrency sector reached its peak in the last quarter of last year. From January to September, the number of losses was $ 100,000, while in December this figure was already $ 700,000. On average, each victim in December, the user lost about $ 13,205.

According to the commission, the most common type of fraud is ICO, financial pyramids and redemption payments:

“… instead of people discovering how to directly buy cryptocurrencies, many found themselves caught up in what were essentially pyramid schemes. A number of reports showed that victims entered into cryptocurrency-based scams through friends and family who convinced them they were onto a good thing, a classic element of pyramid schemes.”

ACCC believes that this increase in fraud activity is closely related to the fact that at the end of 2017, the significance and cost of the cryptocurrency increased. Also, according to the report, this amount is probably only a small part of the actual losses.

It should also be noted that the US Securities and Exchange Commission tightened control over the new ICO in order to improve the level of user safety.

This post is also available in: ruРусский

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