Australian Competition and Consumer Commission Releases its Digital Currency Scam Report

The Australian Competition and Consumer Commission have just released a report recently on scam economy trends of the year 2017. Now, the report addresses a very important concern. It talks about the techniques that have been adopted by the scammers to indulge in digital currency scams.

This report has been compiled because, during the year 2017, the Australian Competition and Consumer Commission received about 200,000 reports that talked about the digital currency scams. The truth is that these scams lead to a loss of about $340 million. If we compare the records of 2016 and 2017, then one thing is quite evident, and that is the loss percentage is about 13.3% more in comparison to the loss records of 2016.

The report sheds light on a very important issue, and that is the losses occurred because the digital currency caused a frenzy. Many of the investors got carried away in this situation and did end up investing in scams.

If we re-trace the records of 2017, then the losses were about $100,000 from January to September. However, the loss amount increased drastically way back in December 2017, and it reached about $700,000. The average loss jumped from $1885 to about $13205.

Most of these scam activities occurred through fake initial coin offerings, and this is how most people lost their money. Some people also cashed on the fact that the digital currency is a comparatively new concept and they cashed out on the confusion of the users.

If the scam scenario is observed, then one thing is quite clear. Most people ended up investing in fake digital currency schemes because their friends and family convinced into opting for new schemes with no reliability. Another way that the scammers caused harm to people is that they took payment in digital currency.

Now, that we have a clear picture regarding the digital currency scam, it is important to identify the need for strong measure and regulations. If the digital currency regulations are rigid, then it will become very difficult for the scammers to follow their course of action.

It is also important that the investors need to be vigilant when they decide to invest in digital currency. They should gather enough information about an initial coin offering. If they are making any investments through an exchange, then the investor needs to have all the relevant insight about the exchange as well. This way the investors can easily play safe.