Recent incidents from across the globe highlight the rising cases of cryptocurrency scams. People from different parts of the world have been defrauded of a lot of money by advanced fraudsters. Many governments across the globe have intensified their fight against such scams and raising awareness of the risks of such investments.
Detailed Operation in Malaysia
On August 19, Malaysian authorities conducted a raid on a crypto scam that was focusing on Japanese investors. The police from the Royal Malaysia Police (PDRM) arrested 21 people during the operations that took place at two luxurious buildings in Kuala Lumpur. Out of the group, fifteen were Chinese, one was a Laotian woman, a resident of Hong Kong, one was from Myanmar, and one was Malaysian.
It was reported that the people involved scammed victims using popular dating apps, such as Tinder and Monsters. They then made them invest in fake crypto schemes through applications such as Bitbank and CoinCheck.
The operation was well-hidden, with the suspects operating out of bungalows enclosed by tall fences in remote areas to avoid law enforcement detection. During the raids, police seized 55 mobile phones, 17 computers, and various other devices used to facilitate the scam. The local Malaysian suspect has been released on police bail, while the remaining 20 suspects are still in custody.
Crypto Scam Victims in Australia Lose Over $100M
Also, the number of incidences of crypto fraud has increased in Australia. According to the Australian Federal Police, Aussies were swindled through investments worth $122 million in just one year. Interestingly, about half of these losses are in the form of cryptocurrency.
For the fiscal year 2023-24, it was pointed out that $259 million was lost to investment scams in Australia. More so, the authorities have identified “pig butchering” and deepfake technology as some of the prevalent methods used by the fraudsters.
In addition, the AFP closed down 615 crypto investment scam websites during the first year of its program to combat fake investment platforms.
Global Perspective on Crypto Scams
Cryptocurrency scams are not limited to any specific geographic location. Consequently, a recent report saw Shan Hanes, former CEO of Kansas Heartland Tri-State Bank, sentenced to 24 years for embezzling $47 million through crypto scams.
Concurrently, the Philippines police apprehended 99 people in relation to similar crypto and romance scams. The same is true in other parts of Asia, as well as in Europe and North America.
For example, the Belgian FSMA announced that 50% of reported frauds in the year’s first half were crypto-related. Moreover, phishing fraudsters withdrew $314m worldwide.
Worldwide, regulators are putting a lot of their energies into making people aware and cautious about dealing with investment opportunities. As the number of scams is increasing, police and financial regulators have intensified their actions on this issue.
