The Australian Federal Police are investigating over 2,000 Australian crypto wallets that have fallen victim to “approval phishing” scams. This follows a Chainalysis investigation, known as Operation Spincaster, which revealed that many Australian-owned wallets were exploited through these scams.
Approval phishing scams trick users into signing off on fraudulent transactions, allowing scammers to move their crypto assets to their own wallets. These scams often appear as fake investment opportunities promising high returns or in romance scams, also known as “pig-butchering” scams.
Since May 2021, approval phishing scams have caused losses of around $4 billion. The Australian Federal Police, working with Chainalysis and other organizations, are tackling this issue through education, tools, and training to better protect Australians and catch the criminals involved.
Chainalysis and the AFP have also conducted workshops to share information on tracking stolen funds, detecting scams in real time, and supporting victims. Major cryptocurrency exchanges like Binance and Crypto.com, along with Australian banks, are also stepping up to prevent these scams.
In the past year, Australian banks, including the big ones like Commonwealth Bank and NAB, have started blocking or restricting transfers to crypto exchanges to protect their customers. In 2023 alone, Australians lost up to $840 million in investment scams, according to regulators.
