Australia’s financial markets regulator, ASIC, announced that it has dismantled over 600 cryptocurrency scams in the past year, emphasizing that fraudsters are continuously evolving their tactics, particularly with the use of artificial intelligence. In a statement on August 19, ASIC revealed that since July 2023, it has shut down more than 5,530 fake investment platforms, 1,065 phishing links and 615 crypto-related scams.
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ASIC Deputy Chair Sarah Court expressed concerns over the increasing use of AI-generated deepfakes, making it harder for the public to identify fraudulent activities. She noted that an average of 20 investment scam websites are being taken down daily, with crypto scams being the primary driver of financial losses in Australia, amounting to $1.3 billion in 2023.
Scammers frequently use fake celebrity endorsements, including those of Chris Hemsworth and Elon Musk, to lure victims with promises of low-cost investments and high returns. In one notable case on June 6, over 35 YouTube channels broadcasted an AI-generated voice of Elon Musk, falsely promising to double cryptocurrency deposits. Another similar incident was reported by The Bitcoin Way in July.
ASIC also issued a warning about Dexa Trade Markets, a suspicious crypto investment firm claiming to be internationally regulated and boasting billions in trading volume. ASIC confirmed that the firm does not hold any licenses to operate in Australia.
While AI is being used to perpetrate scams, some experts believe it could also play a role in combating them. SingularityNET CEO Ben Goertzel suggested that AI could help prevent scams by providing customized summaries of crypto entities’ reputations, although he acknowledged it wouldn’t stop all fraud.
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The issue of fake crypto ads has also gained attention, with the Australian Competition and Consumer Commission (ACCC) reporting that over half of crypto ads on Facebook are either scams or violate Meta’s policies. Meta, Facebook’s parent company, disputed these claims, stating that the data was outdated and that it has since implemented measures to address the problem.
Cre: cointelegraph
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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