HOW TO SPOT CRYPTO SCAMS? EXPLAINED BY (ASIC ) AN AUSTRALIAN REGULATOR

“When Australians fall victim to scammers, the cost is often more than just money.”

“Scams generate mental tension and may have a negative influence on relationships.”

Every year, a campaign called Scams Awareness Week is held. Its objective is to assist individuals in recognizing and avoiding fraud.

Fake cryptocurrency applications, tokens, and employment, as well as payment schemes

According to the Australian Securities and Investments Commission, crypto scams fall into three broad categories: scams in which you believe you're investing in a genuine asset but it's a fake crypto exchange, website, or app; fake crypto tokens (used to steal your crypto assets), and jobs trading crypto that appear legitimate at first glance (but are really money laundering using crypto); or scams in which you use crypto-assets to make a payment.

“Australians lost more than $701 million to investment scams in 2021, up 135% from the previous year, and these frauds are continuing to escalate,” said ASIC Deputy Chair Sarah Court. The most significant cause of the increase was that customers lost 270% more money in bitcoin investment scams. The ACCC has warned that damages from cryptocurrency scams could rise much more in 2022. Given this troubling trend, we aim to provide Australians with the knowledge they need to defend themselves against fraudsters.

ASIC investigators have discovered the top ten indicators of a possible cryptocurrency scam:

• You receive an offer out of the blue

• You see a celebrity advertisement that is actually a fake

• A romantic partner you only know online asks for money in crypto

• You get pressured into transferring crypto from your currency exchange to another website

• Youre asked to pay for a financial service with crypto

• The app you‘re using or directed to isn’t listed on the Google Play Store or Apple Store

• You need to pay more to access your money

• You are ‘guaranteed’ returns, or free money

• Strange tokens appear in your digital wallet

• The provider withholds investment earnings for tax purposes

Sarah Court, ASIC's Deputy Chair, also advised customers on what to do if they are duped.

“It's critical to respond fast if you believe you've been a victim of a cryptocurrency fraud.” Make a line underneath it. Please do not transfer any additional money. Stop any communication with the fraudster. Do not postpone. Report the fraud to your bank or financial institution right away. Request that any transactions be halted. Also, notify your relatives and friends so that they can be on the lookout for any follow-up frauds. When Australians fall prey to scammers, the cost is often more than just money. “Scams cause emotional stress and can have an impact on relationships,” said the Deputy Chair of the regulator.

About ASIC

The Australian Securities and Investments Commission (ASIC) is a separate government agency in Australia that is in charge of regulating business in the country. It was founded on July 1, 1998, in response to the Wallis Inquiry's recommendations. The goal of ASIC is to make sure that corporate and financial services laws are followed and controlled so that Australian consumers, investors, and creditors are protected. The Australian Securities and Investments Commission Act of 2001 specifies what ASIC is and is not permitted to do.

Moreover,

Here is how you can identify if the broker you have chosen that offers crypto trading is regulated under ASIC or unregulated/cloned using the WikiFX App.

An example of a broker that is regulated by ASIC and offers Crypto Trading is IC Markets

The WikiFX App can be downloaded through App Store or Google Play Store.

You may visit the IC Markets web address to learn more: https://www.wikifx.com/en/dealer/9641842942.html

For the unregulated/cloned broker

As you have noticed, the names of the brokers are the same, but the web addresses are different.

WikiFX App may be a great help in finding the right broker to invest in.

Stay tuned for more Regulatory news.

Download the WikiFX App from the App Store or Google Play Store to stay updated on the latest news.