NT Residents Warned of Crypto Investment Scams as Victim Loses $5m

Cryptocurrency investment scams in the Northern Territory are wreaking havoc on people's finances, with one resident losing almost $5 million to a single scam.

In a submission to a federal inquiry on cybercrime, NT police revealed the extent of the problem, with residents suffering lssoes ranging from hundreds of thousands to millions of dollars. The impact of even smaller losses is still deeply felt by victims and their families.

Recovering funds from these fraudulent investment companies is extremely challenging, leading to underreporting of such incidents due to the emotional distress and humiliation experienced.
Banks, police, regulators, and social media platforms are all grappling with the rising tide of investment scams, where scammers exploit fake celebrity endorsements and false news articles to lure victims into high-return schemes that ultimately result in massive financial losses.

Australian federal police have flagged the rise of large-scale human trafficking facilitated by fake job ads and online scam centers. These trafficked individuals are then exploited to carry out online fraud, including investment scams. Furthermore, the police have expressed concerns about the growing accessibility of cybercrimes.

Malicious AI tools like FraudGPT and WormGPT have made it easier for attackers with limited skills or resources to launch ransomware and phishing attacks. These tools started surfacing in July last year from the dark web and encrypted channels.

- CyberBeat