The (ASIC) announced this Wednesday that it has seen an uptick in the number of investment scam reports from consumers and investors within Australia during .
In particular, the Australian regulator said that the number of reports of misconduct it has received from March to May this year has increased by 20 per cent when measured against the same period of the previous year.
ASIC sees rise in crypto scams
Commenting on the rising trend, ASIC Executive Director for Assessment and Intelligence Warren Day said in the statement that economic uncertainty due to COVID-19 has created a perfect storm.
“ASIC is particularly concerned about the risk to consumers and investors losing money when buying into fake crypto-assets. Most crypto-asset investment opportunities reported to ASIC appear to be outright scams and there is no actual underlying investment.”
According to the Australian watchdog, scammers often:
The report from ASIC follows on the heels of the Australian Competition and Consumer Commission (ACCC) that Aussies lost more than AU$634 million (US$435.2 million) to scams during the year – AU$126 million of which was lost to investment scams.