Scammers Exploit ReportCyber to Steal Cryptocurrency
Cryptocurrency scammers in Australia are posing as law enforcement officers and leveraging the government’s ReportCyber system to appear legitimate, the Australian Federal Police (AFP) has warned. This sophisticated scheme aims to trick victims into transferring their crypto holdings to wallets controlled by criminals.
The AFP explained that scammers first submit reports about their targets via ReportCyber, a legitimate cybercrime reporting tool. They then call victims claiming to be police officers and instruct them to check the report online, creating a false sense of authenticity. In some cases, a secondary caller impersonates a representative from a cryptocurrency company, providing additional “verification” and attempting to persuade the victim to move funds from their crypto wallet.
“Thankfully the target became suspicious and hung up,” the AFP noted, highlighting the importance of vigilance.
How the Scam Works
AFP Detective Superintendent Marie Andersson described the method, saying scammers often claim someone has been arrested and that the victim is identified in a cryptocurrency-related investigation. The scammers’ verification steps mimic legitimate police procedures, making the approach highly convincing to some victims.
Andersson urged Australians to adopt online safety measures. “If you’re contacted by someone about a ReportCyber report you didn’t lodge, terminate the call and notify ReportCyber,” she advised. She also stressed: “Legitimate law enforcement officials will never request access to your cryptocurrency accounts, wallets, bank accounts, seed phrases, or personal financial information.”
Australia’s Efforts Against Crypto Crime
The AFP and other authorities have intensified their crackdown on crypto-related crime. In October, law enforcement recovered a coded cryptocurrency wallet backup containing 9 million AUD ($5.9 million), suspected to be crime proceeds.
Earlier, regulators revealed they had taken down 14,000 online scams since July 2023, with over 3,000 involving cryptocurrency. In Tasmania, investigations found that the top 15 users of crypto ATMs were all victims of scams, totaling 2.5 million AUD ($1.6 million) in losses.
The AFP’s warning underscores the growing sophistication of crypto scams and the need for Australians to remain vigilant when approached online or by phone regarding digital assets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.