Queenslanders have misplaced practically $40 million to funding scams together with cryptocurrency swindles this yr — the best loss ever recorded within the state.
Australian Competitors and Shopper Fee (ACCC) figures from January 1 to August 28, present Queenslanders misplaced $38.6 million in funding scams.
On the similar time final yr, Queenslanders had been defrauded of simply $19.8 million.
Nationally, $263 million has been misplaced this yr, virtually double the losses in 2021.
One of many state’s prime monetary crime cops says the new breed of crypto-scammers are more and more utilizing refined methods to lure their victims in, together with posing as celebrities and at the same time as Queensland cops on social media.
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Australian Federal Police (AFP) have additionally known as cryptocurrency an “rising risk” with one report each eight minutes final monetary yr, a 13 per cent enhance on the earlier yr.
Cryptocurrency funding scams are the primary driver of the rise and a file variety of Queenslanders are paying the worth.
Listed below are their tales.
‘Groomed’ and ‘conned’
Sunshine Coast girl Ella (not her actual title) misplaced her life financial savings by means of a refined and complicated scheme.
Over a five-week interval, she mentioned she was “groomed” and “conned” to make three deposits of $34,000 to what she believed to be a professional web-trading platform.
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“My financial institution … did not provide you with any warning indicators that might have made me suppose: ‘It is a bit dodgy’,” she mentioned.
After depositing the funds, the cash was transformed into cryptocurrency accessible by way of a “pockets” handle.
She mentioned the net portfolio appeared to correlate with the inventory alternate giving the phantasm that it was professional.
“The factor is, none of it’s actual,” Ella mentioned.
Cryptocurrency scammers are usually based mostly abroad making them tougher to trace.(ABC Information: Mary Lloyd)
“The minute it leaves [the web trading platform] to that pockets handle … it goes into all these accounts everywhere in the world and it is not possible to really comply with up on any of those accounts from this one pockets handle.”
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After Ella’s third and remaining deposit she tried to drag her cash out as a result of alarm bells rang and she or he had “nothing else within the tank”.
She was advised by scammers to remortgage her home or flip to credit score.
Just a few months later, Ella acquired a name out of the blue from a “very clean” man she’d by no means heard of who claimed to have her cash.
“Then got here the announcement that to ensure that me to get my a reimbursement, I must put in $5,000 USD,” she mentioned.
“I simply hung up however he continued to name me for 3 days afterwards clearly considering that by some means I might come to my senses and drop 5 grand.”
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To this point, Ella has by no means acquired the cash.
“You undergo humiliation, embarrassment, you get into a extremely darkish place since you really feel like how might you be so silly,” she mentioned.
“You do not wish to inform your folks … you would not even know the place to begin.”
$100k misplaced to crypto rip-off
One other 54-year-old Sunshine Coast man just lately misplaced $100,000 in a cryptocurrency rip-off, in accordance with the Queensland Police Service.
He used a professional buying and selling platform however was tricked into investing by means of a faux firm that promised to arrange his account in alternate for a larger return.
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The person was advised he wouldn’t be capable to entry the funds for 12 months, which Queensland Police mentioned was a pink flag.
“If you happen to’re working your personal account, you’ll be able to withdraw at any time,” Sunshine Coast Senior Sergeant Craig Mansfield mentioned.
“His funds have ended up in a pockets someplace on the earth that holds about $3 billion in the meanwhile … who owns it? Who has entry to it? No-one will ever know.”
Senior Sergeant Craig Mansfield says on-line scammers are very troublesome to trace down.(ABC Sunshine Coast: Jessica Ross)
Lured in on social media
Michael Stefanon, from south-west Queensland, invested in cryptocurrency after seeing a “buddy” endorse it on social media — however his buddy had been hacked.
Initially, Mr Stefanon transferred $100 “to check the waters” and when it appeared as if he had made a superb return, he turned suspicious.
“I wished to take that cash out and put it again into my checking account and from there, this individual was saying: ‘Oh, you have to add extra money to get entry to your returns’,” he mentioned.
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“She saved saying: ‘Belief me, belief me, it will work’ so I put in a little bit bit extra.”
Believing messages that seemed to be “skilled and real”, he transferred cash by way of an internet platform that he trusted.
Over a few days, the 35-year-old misplaced about $700 and is grateful it wasn’t extra.
“I felt a bit foolish and need I by no means received ,” Mr Stefanon mentioned.
“I would not belief anybody who contacts you on social media. I simply do not suppose crypto is one of the simplest ways of investing your cash.”
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Do not belief influencers who get wealthy fast
Queensland Police Service Monetary Crime and Cyber Crime Group Performing Superintendent Michael Newman mentioned crypto-scammers go to nice lengths on social media to lure of their victims together with stealing the identities of celebrities and even cops.
“Quite a lot of the adverts that you just truly see on there, the place there’s the likes of Matt Damon investing in cryptocurrency, plenty of occasions their pictures are literally getting used with out their information,” Performing Superintendent Newman mentioned.
“We truly did see on-line there was a picture of a police officer from far north Queensland and the advert learn: ‘Have a look at what this officer did, have a look at how they invested their cash and they’re a multimillionaire’.
Crypto-scammers are turning to social media to lure in victims by means of well-liked on-line profiles.(Pixabay.com)
“We did observe down the officer concerned and that officer had at no level ever given approval for his or her pictures for use and neither had they really invested in cryptocurrency the way in which it was truly being alleged.”
Performing Superintendent Newman mentioned cyber crime investigators have been proactively making an attempt to get these kinds of ads faraway from social media.
“Truly investigating and prosecuting the individual [who posts them] clearly turns into much more troublesome, however we will begin the prevention disruption work by truly having the clearly faux adverts taken down,” he mentioned.
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Lack of regulation creates ‘wild west’
Dennis Desmond, a former FBI agent and cyber intelligence professional at the College of the Sunshine Coast, shouldn’t be shocked extra Queenslanders are getting caught out.
He mentioned as value of residing pressures elevated, individuals tended to search for fast returns.
“Folks [who] play the lottery, they will exit they usually’ll attempt to discover methods to earn further funding,” Dr Desmond mentioned.
“They suppose that cryptocurrency affords this chance for them.”
Dennis Desmond says prison teams are engaged in cryptocurrency scams due to the low funding on their half.(Provided: College of the Sunshine Coast)
He mentioned an absence of regulation and understanding meant “well-organised” prison teams have been getting concerned.
“It is nonetheless the wild west on the market,” he mentioned.
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Report suspicious exercise early
In an effort to sort out cybercrime nationally, the Joint Policing Cybercrime Coordination Centre (JPC3) was launched earlier this yr as a hub for state and federal legislation enforcement and stakeholders, together with AusTrac and the banking trade.
“We actually see cybercrime as a risk that’s rising in scale and quantity and actually inflicting vital impression to the general public,” Cybercrime Operations Commander Chris Goldsmid mentioned.
“We do have the capability, the instruments and experience within the AFP to trace and hint cryptocurrency.
“Cryptocurrency transactions will not be nameless.”
Cybercrime Operations Commander Chris Goldsmid says early reporting of a suspected rip-off is important.(ABC Information: Greg Nelson)
Suspicious exercise and scams may be reported to your financial institution, ReportCyber and Scamwatch.
Commander Goldsmid urged individuals to be vigilant no matter age or geographic location and to report suspicious exercise early.
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“Folks can really feel a little bit bit embarrassed if they have been the sufferer of a rip-off or a cyber crime and that embarrassment can lead individuals to take a while earlier than they suppose to name their financial institution or report it to police,” he mentioned.
“Earlier reporting is basically pivotal if somebody’s gained entry to your account or has efficiently stolen cash from you.”
UBS Global Wealth Management chief investment officer Themis Themistocleous discusses the bitcoin rally and what it could mean from a portfolio investment perspective. Bitcoin is “very volatile” and other hedges “like gold” could prove to be “much more effective” and have “lower volatility,” Themistocleous tells Bloomberg Television. “It’s not an asset that we can recommend to our private clients.”
Bloomberg
If it seems everyone is talking about bitcoin these days, you’re onto something.
The digital currency has been hitting record highs and neared $100,000 this past week, having doubled in value throughout 2024. Launched in 2009, bitcoin is the first cryptocurrency, meaning that it’s a digital currency and does not rely on banks to verify transactions.
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Bitcoin’s surge – up about 130% this year – is one of the “Trump trades,” market moves that have kicked in since former President Donald Trump’s victory in the Nov. 5 election.
Trump has dabbled in cryptocurrency – releasing crypto-based digital trading cards – and Trump Media and Technology Group, which operates Truth Social, is reportedly close to acquiring crypto trading firm Bakkt. The Trump family launched its own crypto firm, World Liberty Financial, in September.
Investors have wagered Trump’s support for bitcoin and other digital assets will lead to fewer restrictions on the industry. During the presidential campaign, Trump said he would make America the “world capital for crypto and bitcoin.”
Trump has tapped Tesla CEO and SpaceX founder Elon Musk to co-lead, with Vivek Ramaswamy, the new Department of Government Efficiency, or D.O.G.E. It’s an acronym for cryptocurrency called Dogecoin, which Musk supported as it became a phenomenon in 2021.
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Been hit with the bitcoin buzz, but don’t quite understand it? Here’s some bitcoin basics.
What is ‘Doge’?: Explaining the meme and cryptocurrency after Elon Musk’s appointment to D.O.G.E.
What is bitcoin?
Bitcoin is a digital asset, launched in 2009 by a person or group known as Satoshi Nakamoto and designed to have a cap of 21 million bitcoin tokens. Bitcoin is created as crypto miners use their computing work to validate bitcoin transactions on its decentralized blockchain network, essentially a digital ledger meant to prevent fraud. As the crypto miners work, they earn bitcoin.
So far, about 19 million tokens have been released. In April, bitcoin underwent a “halving,” which kicks in about every four years to reduce the rate at which new bitcoins are created and released into circulation. As the bitcoin cap of 21 million tokens nears, demand likely increases, according to Investopedia.
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Currently, a bitcoin is worth about $98,000. But the ownership of fractional shares of bitcoin is common, notes NerdWallet.
Cryptocurrency: Legislation likely coming under Trump administration, ex-SEC chief says
What are bitcoin ETFs?
It’s Trump’s interest in bitcoin alone that’s led to bitcoin’s climb. Earlier this year, the U.S. Securities and Exchange Commission voted to allow the sale of bitcoin-based exchange-traded funds, or ETFs, to the public.
That action allowed more investors to get into bitcoin in a similar manner to how they invest in stocks, bypassing crypto exchanges.
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How does bitcoin work?
Like the dollar, bitcoin can be used as currency, but it’s virtual and isn’t controlled by banks or governments. While an entire bitcoin is priced at nearly $100,000, you can own partial shares of each coin. The smallest share of each bitcoin is called a Satoshi – after the cryptocurrency’s creator – equal to a hundred millionth of one bitcoin, according to NerdWallet.
You can buy bitcoin on a crypto exchange such as Binance.US, online stockbrokers including Fidelity and E-Trade, and trading apps like Robinhood.
If you buy bitcoin on a crypto exchange, you will create a “crypto wallet” to hold your bitcoin. If you invest in those bitcoin ETFs the SEC approved earlier this year, online brokers will hold your bitcoin in your brokerage account as any other investment.
What can I buy with bitcoin?
Pretty much anything. For instance, you can get a bitcoin debit card, which you load with a certain amount of your cryptocurrency holdings. That can be used as you would any debit card.
Beyond that, many companies now accept cryptocurrency for purchases including AT&T, Microsoft, Rolex, Time Inc., and Tesla, notes Investopedia.
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You can buy “art,” too. That banana duct-taped to a wall, which sold last week for $6.2 million? The buyer paid in crypto.
Bitcoin: How to buy the cryptocurrency
What concerns are there about bitcoin and cryptocurrencies?
Back in 2018, investment guru Warren Buffett predicted that cryptocurrencies such as bitcoin, will likely “come to a bad ending.” His stance hasn’t really changed, reported Nasdaq.com.
But many point to the surge in bitcoin’s valuation as a sign the cryptocurrency has arrived. Anthony Scaramucci, founder of Skybridge and a former White House director of communications, has said Bitcoin could exceed $170,000 by mid-2025, and Ark Invest CEO Cathie Wood has predicted Bitcoin will hit $1.48 million by 2030, Fortune reported.
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However, crypto exchanges can fail. The 2022 bankruptcy of the FTX cryptocurrency exchange resulted in customers losing $8 billion; founder Sam Bankman-Fried was sentenced to 25 years in prison in March.
Bitcoin values dipped after that, but have since risen to new heights – because, supporters say, as more people invest in bitcoin and other cryptocurrencies, the currencies become more stable.
Volatility can be seen as an advantage for those in search of future earnings – or as a disadvantage for those seeking somewhat stable investments.
“Remember that bitcoin and crypto are highly volatile, and may be more susceptible to market manipulation than securities,” notes Fidelity Investments in a primer for investors. “Crypto holders do not benefit from the same regulatory protections applicable to registered securities, and the future regulatory environment for crypto is currently uncertain.”
Maybe think about investing in bitcoin as you would joining the wave of online bettors. “If you decide to buy Bitcoin, it’s a good rule of thumb to invest only what you can afford to lose,” writes NerdWallet’s Kevin Voigt, “and take measures to protect your assets.”
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Contributing: Daniel de Visé, Jessica Guynn, Max Hauptman, Jonathan Limehouse and Bailey Schulz of USA TODAY, and Reuters.
Follow Mike Snider on X and Threads: @mikesnider &mikegsnider.
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Dogecoin DOGE/USD experienced a 5% surge following a tweet by Elon Musk on X. This has sparked fresh speculations about the imminent payments service on Musk’s social app.
What Happened: Musk’s Friday post, which featured a screenshot of podcaster Joe Rogan’s X profile, triggered the increase in Dogecoin’s price.
The post displayed a unique dollar icon, different from the app’s tipping service, leading to speculations that it could be related to the anticipated X Payments service.
Musk responded to the speculation with a simple “true”, further fueling the rumors. Dogecoin’s price has historically been influenced by payment-related news from any of Musk’s ventures, including X, formerly known as Twitter.
There are speculations that once the service is live, it might support transactions with digital assets like DOGE, given Musk’s known fondness for the token.
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Musk’s electric car company, already accepts DOGE payments for certain merchandise purchases in its online store.
Also Read: Dogecoin’s Active Users On The Rise, Will This Impact DOGE Price?
Over the past 24 hours, DOGE has advanced 6.16% and at the time of writing it was trading at $0.4332, outperforming the stagnant Bitcoin BTC/USD prices. The token has risen 190% over the past month, trading at its highest level since May 2021.
Why It Matters: The surge in Dogecoin’s price following Musk’s tweet is significant as it highlights the influence Musk has over the cryptocurrency market.
His tweet sparked speculations about the forthcoming X Payments service, which could potentially support transactions with digital assets like DOGE.
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This is particularly noteworthy given Musk’s known fondness for the token and the fact that his electric car company, Tesla Inc., already accepts DOGE payments for certain merchandise purchases.
The rise in DOGE’s price also outperformed the stagnant bitcoin prices, indicating a growing interest in alternative cryptocurrencies.
Read Next
Crypto Analyst Predicts This Altcoin Will Explode 260% In 2024, And It’s Not Dogecoin Or Shiba Inu
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Bitcoin prices hovered around $98,608 on Saturday on international exchanges, buoyed by the euphoria over Donald Trump-led Republican party reclaiming the White House. With its total market cap touching more than two trillion dollars, the oldest cryptocurrency has witnessed a spike of 51 per cent in the past one month.
There is hope that the Donald Trump-led US administration will adopt crypto-friendly policies when it takes over in January next year for its second term. The rally got further impetus when BlackRock’s spot Bitcoin ETF options were listed on Nasdaq on Tuesday.
Indian crypto industry insiders are naturally upbeat about this rally. Balaji Srihari, Business Head of CoinSwitch, says, “Bitcoin surged to an all-time high, signalling that the much-anticipated $100,000 milestone could be within reach- many analysts predict that this mark could be achieved as early as the end of November. Since the recent US election, Bitcoin has been consistently setting new records, encouraged by expectations of a more supportive regulatory framework and a potential national Bitcoin reserve; that can legitimise Bitcoin as a government-backed asset. BlackRock’s Bitcoin ETF debuting options trading on Nasdaq is a big sign of increasing crypto adoption.”
Apart from bitcoin, other crypto tokens too have witnessed a surge. XRP, for instance, has surged 188 per cent in the past one month, and 37 per cent in the past five days alone. Ether trades at $3,354 and BNB trades at $665 on Saturday, according to Coinmarketcap data.
Shivam Thakral, CEO of BuyUcoin, says, “In the last 24 hours, Bitcoin reached a record high of $99,000. XRP led the charge with a remarkable 25 per cent increase, driven by renewed optimism surrounding a more crypto-friendly regulatory environment in the US. It is anticipated that Donald Trump’s win in the election will drive the implementation of crypto-friendly policies, which will, in turn, enhance market sentiment. As trading volumes rise and hopes for ETF approvals increase, the future looks extremely positive for XRP and the wider cryptocurrency market as we near the end of the year.”
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Vishal Sacheendran, Head of Regional Markets at Binance, says, “Bitcoin’s rally, fuelled in part by the optimism surrounding Donald Trump’s re-election, represents a transformative moment for the crypto and Web3 space. His administration’s support for digital assets could lead to more progressive regulations, fostering an environment conducive to greater institutional and retail investment in the sector. I believe that the broader crypto ecosystem could benefit from policies that promote blockchain infrastructure, and provide a better route for financial institutions to engage with crypto.”
Caution needed
Despite all the positive factors, crypto experts believe that investors should stay cautious and not get too carried away. It is common knowledge that bull runs are often followed by steep corrections. So, one should be cautious before getting too elated. “Amid the excitement, traders should stay cautious. Big price jumps often lead to sharp corrections, and using too much leverage could amplify risks during volatile periods,” says Srihari from Coinswitch.
“It is also important to note that in a bull market like this, investors should also remain mindful, conduct thorough research, and not make investment decisions solely based on market sentiment or hype,” adds Sacheendran of Binance.
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