New Research Suggests That Education on Crypto Scams May be Lacking in Australia

Jimmy Aki
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University of Queensland research uncovers an education gap in Australia regarding crypto scams. Improving online financial education from trusted sources is key to mitigating their impact.

Australian Crypto Scams Defy Socio-Economic Boundaries

The study from the University of Queensland discovered that vulnerability to cryptocurrency investment scams had little to do with socioeconomic status as it affected everyone on all socioeconomic levels.

It found out that most people were drawn to crypto scams because they listened to unsolicited advice and had little to no knowledge of financial literacy, making them the perfect target for crypto scammers.

What’s even more surprising is that Australians with a decent level of education were also getting scammed together with those without. This showed that most of them do not have sufficient knowledge about cryptocurrencies and how best to invest in them.

Also, the educated ones were probably overconfident in their limited abilities to the point where they couldn’t see themselves becoming victims of crypto scams, which ultimately led to them being scammed.

In order to tackle this growing menace, the study recommends the use of online financial education from trusted independent sources to combat these scams.

It also advocates for education about crypto-related financial products to be taught in schools and universities so that Australians can equip themselves with the nitty-gritty of cryptocurrencies and how they work.

Events of Recent Crypto Scams in Australia

Crypto scams have been very rampant of late, with some scams involving celebrity accounts where hackers gain access to disperse meme coins to the unsuspecting public.

Australia has become a hotbed for crypto scams simply because over 25.6% of Australians own crypto, according to data from Statista, putting the country among the top regions for crypto ownership globally.

In March 2024, a money launderer called Muhammad Abdullah Cheema was awaiting his sentence from a Sydney Court after it was alleged that he shifted massive ill-gotten sums of money using cryptocurrency.

The Australian police also alleged that the hundreds of thousands of dollars found in the accounts he was controlling were proceeds of scams targeted at elderly Australians.

In April, ABC Australia shed light on how deep fake clips of well-known personalities were played on social media to deceive Australians into having an interest in the content and signing up on the platform where the scam operation will be carried out.

This new scam strategy has always been major in the crypto space, as Robert Kiyosaki warned of deepfake crypto scams earlier in the year.

Looking at these events, it is evident that the Australian Securities and Investment Commission has a lot of work on its hands if it wishes to end the growing menace of crypto scams in the country.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.