- Australia joins global campaign against cryptocurrency scams.
- Operation Spincaster targets $4B in ‘approval phishing’ scams.
- Identified 2000+ compromised crypto wallets in Australia.
As the crypto industry grows, it has become a prime target for cybercriminals . This is why international law enforcement is stepping up its efforts to combat crypto crime, including various scam tactics.
Recently, the explosion of crypto scams prompted the Australian authorities to get involved in a global preventive initiative. The operation focuses on a type of phishing scam which caused at least $4 billion in losses so far.
Global Crackdown on Approval Phishing Scams
More and more countries are getting involved in fighting global crypto crime. On June 5, Australia officially joined Operation Spincaster , an international campaign to combat cryptocurrency scams. Led by the AFP’s Joint Policing Cybercrime Coordination Centre (JPC3) in collaboration with Chainalysis, this operation has targeted ‘approval phishing’ scams that have plagued the crypto community.
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Approval phishing scams involve criminals convincing victims to approve a malicious transaction that grants the scammer access to their crypto wallets . Once access is granted, the scammers can transfer the funds to their accounts, making recovery extremely challenging.
According to Australian authorities, this tactic has led to the theft of over $4 billion in cryptocurrency globally since May 2021. Notably, scams are rising when the markets are up, thanks to increased asset prices and investor exuberance.
Operation Spincaster Finds 2000 Compromised Wallets in Australia
To combat these scams, Operation Spincaster involved training sessions with over 100 participants joining training sessions from April to June 2024. Participants came from crypto exchanges and government agencies from the US, UK, Canada, Spain, Netherlands, and Australia. These sessions focused on sharing intelligence about compromised wallets, tracing stolen funds, and detecting ongoing real-time scam attempts.
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In Australia alone, the agency identified over 2000 compromised crypto wallets, and investigations are ongoing to recover stolen funds and prevent further losses. According to authorities, crypto exchanges, including BTC Markets, Binance, and Crypto.com, played a crucial role in identifying and supporting Australian victims.
On the Flipside
Crypto scams continue to be a serious problem. In the second quarter of 2024, hacks and scams resulted in $573 million in losses globally.
In June, experts highlighted a growing trend of scams targeting the TON ecosystem, with scam links spreading through the Telegram messenger app.
Why This Matters
Working together, governments and exchanges have a greater chance of fighting global crypto crime, which continues to be a significant threat to the industry.
Read more about how crypto prices attract scammers:
Crypto Boom Attracts Scammers: Here’s What to Watch Out For
Read more about the Bybit’s troubles in Europe:
Bybit Shuts Down in France: Here’s What Users Have to Do
