27 Aug 2024 8:46am
On the second day of Scams Awareness Week, South Australia Police (SAPOL) is shining a spotlight on investment scams, which reportedly claim more money from Australians than any other scam type.
In 2023, investment scams accounted for more than 60 per cent of those reported to the Australian Competition and Consumer Commission’s Scamwatch, with national losses at around $293 million. In South Australia, more than $10.2 million was lost to scammers in the same year.
“While this amount is alarming, it is likely actual losses are significantly higher because many people don’t report when they’ve been scammed,” Cybercrime’s Senior Constable First Class Casey Morrison said.
“Investment scams involve promises of big payouts, quick money, or guaranteed returns.
“In addition to the traditional way of transferring funds through bank transfer, cryptocurrency is becoming more popular because of the perceived anonymity it offers. Crypto scams often aim to gain private information such as security codes or trick an unsuspecting person into sending cryptocurrency to a compromised digital wallet.”
Across Australia, victims aged 65 and over have suffered the highest losses due to investment scams, with the median amount lost at $30,000.
Red flags
Prevention advice:
Real-life example:
Andrew began speaking to a woman named Zoe on the Tinder dating app. After a few weeks of conversation, Zoe suggested that they continue communications on a popular encrypted messaging app. Over the following weeks, Zoe began to speak about investing in the cryptocurrency market and said that she was doing well. She encouraged Andrew to invest and assisted him with setting up an account and provided advice on how to make an investment using an online trading platform. Zoe recommended that Andrew first transfer a small amount, which he did. The following day, Andrew received a small amount of interest back into his cryptocurrency account. Feeling pleased about the instant return, Andrew proceeded to invest nearly $13,000, which included him obtaining a bank loan. When Andrew attempted to withdraw the funds, he was unable to do so and all contact from Zoe has now ceased.
Report
Support
For more information visit www.police.sa.gov.au/scams-week