• ASIC suggested 10 ways to identify crypto scams.  

Since the last few months, crypto scams have rapidly increased, and reliable data states that approximately 100+ hacks occurred in the crypto sector in 2022 worth approximately $2 billion. 

Recently, the Australian market regulator released a list of “top-10 ways to spot a crypto scam,” with a motto to help detect rising crypto scams.

The report featuring ‘top ten ways to spot crypto scams’ was published on 8 November 2022 on the official website of ASIC(Australian Securities and Investment Commission).

The report was published as a part of Scams Awareness week 2022, an initiative launched to make the Australian public and investors aware of crypto scams.     

ASIC notes that investors in Australia have already lost a massive amount in ‘investment scams’ in 2022, and the amount is more than $701 million in the total amount lost in the crypto scam that occurred in 2021.   

Moreover, Sarah Court, deputy chair of ASIC, blamed crypto for an unprecedented hike in investment scams in the last two to three years.

She noted that “The main driver of the increase was cryptocurrency investment scams, where losses increased by 270%. The ACCC have advised that losses to crypto scams have increased further in 2022.”

Sarah further noted that “Given this concerning trend, we want to arm Australians with the information they need to protect themselves from scammers.” 

Mrs. Court highlighted, “If you think you’ve been the victim of a crypto scam, it’s important to act quickly. Draw a line under it. Don’t send any more money. Block all contact with the scammer.” 

ASIC divided Crypto Scams Into Three Main Categories. 

1. The first and foremost in this category is when investors think they are investing in genuine and trusted assets. Still, it turns into a fake website, exchange, or application after a specific time.  
2. The second category talks about fake crypto tokens(Used to stole crypto tokens) that scammers and hackers create to attract investors and make them believe that it is trustworthy and invest huge amounts. This category is somewhat related to money laundering.

3. Scams that use crypto-assets to make a payment.       

ASIC Highlighted Ten Major Points to Identify a Crypto Scam 

1. You receive an offer out of the blue. 
2. You see a celebrity advertisement that is actually a fake. 
3. A romantic partner you only know online asks for money in crypto. 
4. You get pressured into transferring crypto from your current exchange to another website.
5. You’re asked to pay for financial services with crypto.
6. The application you use or directed to isn’t listed on Google Play Store or Apple Store.  
7. You need to pay more to access your money. 
8. You are ‘guaranteed’ a return or free money. 
9. Strange tokens appear in your digital wallet.  
10. The provider withholds investment earnings ‘for tax purpose.’

Source: https://www.thecoinrepublic.com/2022/11/08/asic-suggest-ways-to-avoid-crypto-scams/