The scam, which has been operating for several months, involves the use of fake websites, emails, and social media accounts to lure unsuspecting victims into investing in a fraudulent cryptocurrency.
Evidence has revealed that Australians were among the top countries targeted in a sophisticated cryptocurrency investment scam network, which is believed to have its roots in Israel. This intricate web of fraud has been linked to a number of high-profile kingpins in the region.
Australian residents have been identified as one of the primary targets of a sophisticated network of cryptocurrency call-centre scammers, which are suspected to be run by Israel-based crime bosses.
In a full-scale raid conducted by Serbian, German, Bulgarian and Cypriot authorities, four Serbian call centres and 11 residences were searched, resulting in fifteen arrests and the seizure of $1.46 million in cryptocurrencies. According to a Feb. 23 report by The Australian, Australians were among the top countries being targeted by this criminal network.
Scammers from call centres have allegedly been using social media advertisements to entice victims with the promise of lucrative investment opportunities, according to a recent report. Private investigation firms have revealed that Australians are particularly targeted due to their relative wealth and the lack of effective investigation by federal and state authorities. One firm stated,
“Australia is a target for international crime syndicates because of its affluence and a lengthy history of state and federal authorities being unwilling or unable to look into internet investment fraud.”
Mark Solomons, Senior Investigator at IFW Global, a private intelligence firm, explained that Australians are renowned for their friendly and open-minded nature, making them particularly susceptible to online relationships if the right triggers are activated.
"Australia and Canada are two of the wealthiest countries in the world, yet their online activities remain largely untraceable and undetected."
This provides citizens of both nations with a sense of security and privacy, allowing them to explore the digital world without fear of being monitored. Solomons asserted that much of the pilfered cryptocurrencies are being utilized to finance the scammer's luxurious lifestyles:
“It is no secret that certain Israelis are profiting immensely by exploiting Australians and draining the Australian economy of their retirement and superannuation funds.”
"According to Europol, a global operation took an estimated $3.1 million, but they believe the true amount to be far higher—possibly in the hundreds of millions of euros. This criminal activity involves individuals who have access to private jets, luxurious real estate, expensive cars, and large amounts of cash. These individuals are able to travel around the world with ease, and even purchase yachts, as noted by Solomons."
Solomons has recommended the Australian government increase enforcement measures at the state, federal, and international levels in order to make targeting Australian investors less alluring to scammers compared to other wealthy nations.
According to reports, Australians may have lost up to $2 billion in mind-boggling investment scam losses in 2021. In 2022, the Australian Competition and Consumer Commission (ACCC) stated that this number had risen by an astounding 75.6% to $568.6 million. Of these losses, a staggering $221 million were attributed to the use of crypto payments, according to the ACCC.
In the first month of 2023 alone, victims lost an extra $53.4 million. In an effort to combat this, the Australian Securities Investment Authority (ASIC) published a list of the "top-10 techniques to recognise a crypto scam" in November.
To further combat the issue, the ACCC began trialling a cybersecurity service in July that automatically takes down scam websites. This trial has already seen some success, with several crypto scam sites being quickly taken offline.
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