Crypto Scam Alert: Impersonators Pose as Australian Police to Defraud Victims

Cryptocurrency Scam: Impersonating Australian Police

The Australian Federal Police (AFP) has issued a warning regarding sophisticated cryptocurrency scams where fraudsters impersonate police officers and exploit government infrastructure to pressure victims into handing over their digital assets. This article breaks down the intricacies of this scam and provides advice on how to protect yourself.

How the Scam Works

The AFP reports that scammers are using the local cybercrime reporting tool, ReportCyber, to submit bogus reports about their intended targets. They then contact these targets, posing as police officers, and direct them to check the report on government websites, lending credibility to their deceit. In one reported instance, scammers warned a victim that a representative from a crypto company would also contact them, providing the same report information to further legitimize the scam. This second caller then attempted to persuade the victim to transfer funds from their personal wallet to a wallet controlled by the scammers. Fortunately, the victim became suspicious and terminated the call, preventing further loss.

A Deceptive Game

AFP Detective Superintendent Marie Andersson explained that the scammers falsely claim an individual has been arrested and the victim has been identified in an investigation relating to a cryptocurrency breach. She highlighted that the verification steps used by the scammers often mirror legitimate law enforcement procedures, making the scheme "highly convincing" to some victims. Andersson also noted that this scam is part of a broader trend of increasingly sophisticated scams. She urged Australians to adopt necessary online safety measures, warning that “if you’re contacted by someone about a ReportCyber report you didn’t lodge or authorise someone to make on your behalf, terminate the call and notify ReportCyber.”

It is crucial to remember that legitimate law enforcement officials will never request access to your cryptocurrency accounts, wallets, bank accounts, cryptocurrency wallet seed phrases, or any personal information related to your financial accounts.

Australia Cracks Down on Crypto Crime

Australian authorities have been actively combating cryptocurrency-related crime. In late October, the AFP announced the successful cracking of a coded cryptocurrency wallet backup containing AUD 9 million (USD 5.9 million), suspected to be proceeds of crime. Furthermore, in late August, reports indicated that Australia's markets regulator was expanding its campaign against online scams, having removed 14,000 scams since July 2023, with over 3,000 involving cryptocurrency. In July, authorities in Tasmania found that the top 15 users of crypto ATMs in the state were all victims of scams, with combined losses totaling AUD 2.5 million (USD 1.6 million).