Simon Callaghan, the newly appointed chief executive officer at Blockchain Australia, announced today the need to address crypto scams. Callaghan urged the financial institutions in Australia to join hands with the government and crypto firms in implementing proactive measures to avert crypto-related crimes. The executive lamented that crypto scams have recently increased.
During Australia Blockchain Week held in Melbourne, the participants proposed strategies to improve the adoption of blockchain technology in the Australian market. The event aims at proposing ways to leverage blockchain technology to foster innovation and stimulate economic growth in Australia.
Factors Contributing to Increase in Crypto Scam
On June 30, Callaghan presented the risks associated with crypto scams at the blockchain event. In his presentation, Callaghan mentioned that the Blockchain Australia would prioritize exploring ways to prevent crypto scams. He added that the association will work closely with the Australian banking sector and the government to protect consumer interests.
The CEO highlighted that most crypto crimes were reported through social media platforms and other telecommunication sites. Callaghan suggested the implementation of policy standards at the initial contact to address such scams.
The executive confessed to conducting a study to examine the factors contributing to the rise of crypto scams in Australia. He noted that the crypto scams rate occurs mostly compared to chains. Callaghan observed that cryptocurrency is a critical element in the life cycle of a scam since it is mainly used as an exit point.
Strategies to Address Crypto Scams
In his study, Callaghan discovered that a few countries had established collaborative efforts to address crypto scams. From the success stories of Denmark, Finland, and New Zealand, Callaghan believes that Australia will leverages its position to become a leading country with the least crypto scam. He expressed his optimism that Australia can combat scam concerns through strong leadership and support other jurisdictions in preventing such crimes.
Recently crypto scam cases has been making headlines and received negative sentiments in Australia. The Commonwealth Bank of Australia (CBA) reportedly adopted restrictive measures to prevent scam activities in May. The CBA report stated that from the risks related to the scam, the bank was forced to put some of the payments made through crypto exchanges on hold.
Will Australian Authority Reduce Scam and Fraud Cases?
Besides the measures adopted by banks to mitigate scams, the Australian government has taken strategic action to address the concern. On July 1, the consumer regulatory watchdog Australian Competition and Consumer Commission (ACCC) will launch a National Anti-Scam Center (NASC).
This center will conduct public awareness campaigns to educate Australians about scam risks. The ACCC training will underscore the need to report scam cases and inform the public about utilizing the Scamwatch software.
Furthermore, the NASC and ACCC plan to provide the public with resourceful information to prevent scam activities. The two agencies will collaborate in sensitizing the community on ways to avoid scams or being scammed.
In an earlier report dated June 26, the assistant secretary at the Australian Treasury, Trevor Power, confirmed that the government would invest in minimizing scam cases. Power noted that the NASC team would be mandated to deal with cases involving crypto scams.
He restated that cryptocurrency has recently attracted scammers. The assistant secretary confirmed that the NASC would focus more on addressing such scams.
In a media release issued on June 28, the Blockchain Australia team revealed plans to conduct a study to review data on crypto scams. From the survey, the Blockchain Australia team plans to obtain relevant information on ways to prevent fraud and scams.
