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An annual report was released by the Australian Competition and Consumer Commission. It came to the conclusion that the citizens lost around AUD $ 2.1 million due to the crypto attacks that took place in 2017.

Some scams are becoming very sophisticated and hard to spot. Scammers use modern technology like social media to contact and deceive their victims. In the past few years, reports indicate scammers are using aggressive techniques both over the phone and online,” according to the ACCC.

The report was published on Monday, 21st May, describing financial losses “targeting scams report“. In total, Australia was the home of 200,0000 scam reports in 2017, which led to a loss of AUD $ 340 million.

During the period between January and September 2017, the ACCC has identified a loss of $ 100,000 in crypto scams. However, the period with most fraudulent incidents occurred in the crypto sector was found in the fourth quarter of 2017.

As the value of actual cryptocurrencies increased, so too did the scam losses in what people thought were real investments. By the end of the year, reports of losses related to cryptocurrencies exceeded $2.1 million but as with other scams, this is likely the very tip of the iceberg,” reports the ACCC.

Source: ACCC

A reason that led to the rise in the number of scams in Australia is the increase in Bitcoin’s market value by the end of December 2017. The number of scam reports has increased significantly once the value of the most popular cryptocurrency has reached $ 20,000. Thus, in December 2017, the losses passed $ 700,000 in scams.

Some scams are becoming very sophisticated and hard to spot. Scammers use modern technology like social media to contact and deceive their victims. In the past few years, reports indicate scammers are using aggressive techniques both over the phone and online,” according to the ACCC.

It has been identified that the most used fraud methods for 2017 were fake ICOs and Ponzi schemes. “[Crypto scams] capitalised on the general confusion about how cryptocurrency works and instead of people discovering how to directly buy cryptocurrencies, many found themselves caught up in what were essentially pyramid schemes,” the ACCC reported.

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