Cryptocurrencies have some of the great advantages, but the market is so vulnerable to security threats. Every now and then, people get to hear about the hacking into the wallets and stealing the currencies. There are several regulatory bodies that are creating awareness among the users on how to identify these kinds of scams, but still, they are not stopping.
The Australian Competition and Consumer Commission released a detailed report of the scams that have affected Australian cryptocurrency community. In this report, the commission quoted cryptocurrency as
“Cryptocurrencies, also known as virtual or digital currencies, are a form of electronic money. They do not physically exist as coins or notes. Virtual currencies can be bought or sold on an exchange platform using conventional money, or traded for other virtual currencies.”
The report has given some statistics regarding the cryptocurrency scams, and according to it, there were 647 situations where scammers were paid in the form of digital currency in 2018. Australians have lost a total of AUD 6.1 million which are approximately 4.3 million USD in last year.
The cryptocurrency scams have skyrocketed and nearly AUD 2.1 million more was lost in 2018 when compared to 2017. The report stated that most of the novice investors have got excited about the investments and spent the amount on scammers. 2017-2018 is the period when BTC has reached its highest ever price, and this has an increased amount of scams.
Usually, the scammers trick people to invest in their platform luring them with various kinds of offers, and when the users try to cash out, they won’t be able to. $2.6 million of the amount is lost in these investment scams only.