Crypto platforms a ‘getaway’ for half of scam proceeds
Half of all proceeds from fraud and financial scams in Australia are being washed through cryptocurrency platforms, according to data from the Australian Financial Crimes Exchange.
The not-for-profit group said data from its members, which include the big four banks, revealed that 47 per cent of scam funds were sent to accounts associated with cryptocurrency exchanges in the last 30 days of the financial year.
“Once funds have been transferred to crypto, it is extremely difficult to recover them.” said AFCX managing director David Pegley.
Commonwealth Bank, ANZ, National Australia Bank and Westpac have all taken steps to limit transactions to “high-risk” crypto exchanges.
The consumer and competition watchdog has estimated that Australians lost more than $3 billion to financial scams last year and the role of cryptocurrency exchanges as a potential enabler has been a hotly debated issue. In June, the regulator reported consumers lost more than $38 million to scams over the month.
Although banks have sought to de-bank crypto exchanges, regarding them as an apparent blind spot in the financial system infrastructure, crypto industry insiders say it is social media and telco companies that allow scammers to access consumers.
Mr Pegley said the “funds are eventually channelled to organised crime organisations and facilitate their activities such as dealing in guns, drugs, and other crimes.”
The AFCX was created in 2015 so banks, financial institutions and law enforcement agencies could share information to prevent scams and financial crime. Its members include the big four banks, other lenders, Optus and the Department of Home Affairs.
Australian Banking Association chief executive Anna Bligh said the data showed that an
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