![]() ![]() ![]() The goal is to get access to the victim's systems and personal information, and steal whatever they can. The third most common investment scam, making up 14% of those reported, was scammers impersonating someone or something legitimate - a business, government agent or a well known figure, for example. These are particularly malicious because lonely or vulnerable people are the most likely to be caught out, but the methods are becoming ever more convincing, catching out more people. The scammer might reassure the victim that their money is already generating big returns, convincing them to deposit more. Scammers might build up trust over an extended period of time, even maintaining the scam after an initial deposit to get more and more money from the victim. The pig analogy is a brutal one, but it's apt because these scammers aren't content with tricking you into a quick $400 payment to get a payID transfer over the line they are going after everything the victim has, the 'full hog'. The victim might be directed to illegitimate trading platforms, or the scammer might offer to train them in crypto investing, directing the victim to deposit money somewhere with the promise of large returns. The scammer builds trust with the victim through social media or dating apps ('fattening up' the pig) before introducing them to fradulent investment opportunities (the subsequent butchering). Pig butchering scamĪnother 31% of reported scams were what's known as 'pig butchering' scams. Unless covered by an exemption, trading platforms need to have a licence, usually an Australian Financial Services (AFS) licence, so be wary if it doesn't seem like the site or app you've found does. "Ensure the platform has proper security measures in place, such as two-factor authentication, encryption, and, more importantly, a solid reputation within the crypto community.” "Only trade and invest through reputable and secure cryptocurrency exchange or crypto CFD providers," Mr Weller said. Matt Weller, Head of market research at City Index, recommends skepticism about any unfamiliar trading platform. They are often extremely convincing, imitating price movements and showing fake gains. The scammer sets up a website or application that appears to be a legitimate way to trade, promising investors unique and lucrative opportunities. More than a third (36%) of the scams reported involved illegitimate trading platforms. These are the most commonly reported investment scams to watch out for: Fraudulent trading platforms With rapidly developing Artificial Intelligence (AI) tools now at scammers' disposal, as well as the deluge of get-rich-quick schemes on social media, it's never been harder to separate the genuine investment opportunities from the fraud. This was up 180% on losses during the same period in 2021, with 844 different investment scams reported.Īccording to the ACCC, cryptocurrency investing is particularly catching Australians out, with 78% of the investment scams reported linked to crypto. Stay updated on the latest scam innovationsĪccording to data gathered by City Index via the ACCC's Scamwatch data, Aussies lost $151,426,745 to investment scams during the first five months of 2023. ![]()
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