Australia Records 162.4% Increase In Cryptocurrency-related Scam Rate
In a recent news report, Australia recorded a significant rise in the crime rate related to cryptocurrency. With a massive loss of AUD 221 million (USD 146 million) in crypto theft and fraud, Australia recorded a whopping 162.4% increase in the crypto crime rate compared to last year’s record. Meanwhile, the country’s financial authorities have reportedly collaborated with Swyftx and TRM Labs to counter the current situation in the country’s crypto market.
According to the report, TRM Labs, a crypto analytics firm, and Swyftx, a crypto exchange in Australia, have formed an alliance to tackle the worrying increase in crime rates in the Australian crypto market. Furthermore, the collaboration is reportedly aimed at improving security and raising awareness of security breaches and scams among crypto investors in Australia during the recent Scam Awareness Week organized by the Australian government.
Furthermore, the report revealed that crypto users who enabled the two-factor authentication initiatives by the Australian government would be rewarded with a sum of 10 Australian dollars in Bitcoin. For context, two-factor authentication (2FA) is a popular online security measure that demands users use two different forms of identification to protect and access their accounts, unlike single-factor authentication that requires just one passcode or password.
Banks Stop Crypto Payments Due To Scam
Moreover, 2FA offers better security, preventing scams and unauthorized access to crypto accounts, which is why Swyftx and TRM Labs encourage its usage in the crypto space. Additionally, in recent days, the Australian government has intensified its scrutiny level, dishing out more stringent crypto regulation, especially after the fall of FTX exchange last year. Reports revealed that the country’s authorities had filed multiple legal actions against several crypto firms in its territory, including eToro and Block Earner.
In addition, local banks in the county have placed restrictions on cryptocurrency settlements, claiming rampant crime rates. For instance, withdrawals and deposits by bank transfer using the Binance Australia payment gateway had been temporarily stopped by the third-party initially providing the payment service. Also, the Commonwealth Bank reportedly brought up partial restrictions to crypto payment, deterring crypto platforms’ full access to its service.
Crypto-related Scams Escalate In Australia
Meanwhile, the cryptocurrency industry seemed to have reached a common ground with the Australian government as a recent report showed that the collaborative effort of Swyftx, TRM Labs, and other government regulators is channeled towards creating a solution to address the challenges and risks of crypto fraud and scams facing the crypto industry, especially in her region.
According to reports, the status of crypto-related scams and fraud is rapidly escalating in Australia. Statistics showed that about 221 million Australian dollars were lost due to crypto scams and theft in 2022, which is equivalent to 146 US dollars and amounts to about a 162.4% rise compared to the 2021 rate. The huge losses point out the urgent need for fortified and improved security standards as well as increased public enlightenment concerning scams and fraud related to crypto.
Swyftx And TRM Labs Combat Crypto Scams
In order to combat the rise in crypto theft, Swyftx, which is a prominent crypto exchange in Australia, has reportedly put some proactive security measures in place to protect crypto investors from being scammed. Furthermore, statistics showed that the firm averted crypto-related scams worth about 3 million Australian dollars this year alone.
Included in its collaboration deal with TRM Labs, Swyftx plans to incentivize the first 2,000 customers to activate 2FA security measures on their accounts as well as complete a course provided by the cooperation. The eligible winners would receive a bitcoin bonus worth 10 Australian dollars in their accounts.
Additionally, to encourage the adoption of the 2FA model, the two firms are set to launch a platform where customers can report suspected crime activities. Any cases that are suspicious, investors are advised to report them on chainabuse.com, which is a free crime-reporting online website created by TRM Labs. They aim to provide a more secured crypto ecosystem by enabling users to examine and verify the authenticity of addresses before dealing with them.
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