Police in Australia, in cooperation with blockchain analytics firm Chainalysis, have uncovered a massive cryptocurrency scam targeting Australian citizens. More than 2,000 compromised digital wallets have been identified as part of their worldwide operation to combat cryptocurrency fraud.
The joint effort focused on dismantling a global criminal network that used sophisticated phishing tactics to defraud victims of more than $4 billion in cryptocurrencies as of 2021.
Based on the operation’s findings, Australian law enforcement agencies are pursuing those responsible for cryptocurrency losses suffered by Australian citizens. At the same time, they are developing strategies to counter phishing tactics and protect the public from future cryptocurrency scams.
In this particular phishing scam, called “approval phishing,” criminals manipulate victims into granting access to their cryptocurrency wallet. Then, by tricking the victims into signing a malicious transaction, they take full control, and it allows them to empty the contents of the wallet at will, just as it gives away total control of their bank account.
In June 2024, Australia took a proactive stance against cryptocurrency fraud, convening a workshop with Chainalysis and key stakeholders. Industry experts, government agencies and law enforcement collaborated to share intelligence, enhance investigative capabilities and develop victim support protocols.
The workshop aimed to strengthen Australia’s defense against the evolving tactics of cryptocurrency fraudsters.
Australia is addressing the increased risk of illegal activities in the growing cryptocurrency market
Australia has seen rapid growth in cryptocurrency adoption, with more Australians than the global average owning digital currencies. This growing market has not escaped the attention of regulators, and cryptocurrencies are coming under increasing scrutiny in the country.
The growing threat of money laundering through cryptocurrencies has prompted a strong warning from Australia’s financial regulator. A recent assessment identified digital currencies as a major weakness in the country’s financial safeguards, and the risk of illegal activities is expected to increase.
