Breaking victim ‘trust’ in scammer is key to beat crypto scams, exchanges say
Cryptocurrency exchanges in Australia have been increasingly communicating with their users as part of preventative measures against scams. According to local crypto firms, such communication is the key to preventing scams as it is able to “break trust” between victims and scammers.
Executives at major Australian crypto firms such as Cointree, CoinSpot and Swyftx met at a panel of the fintech conference Intersekt 2023 in Melbourne on Aug. 31 to discuss the issue of scams and fraud in crypto.
At the panel, the executives mentioned a variety of measures taken by the platforms in order to protect their users from fraud, including automated and manual Anti-Money Laundering (AML) checks, investigations, education and communication.
According to CoinSpot AML officer Jedda Stocks-Ramsay, the firm has been particularly focused on “just talking” to its customers as it finds it really effective.
“We find that we’ll speak to our customers at least once over the course of their life or the course of their life on their account with us,” Stocks-Ramsay stated. He noted that talking about scams is the key factor because there’s a social engineering aspect to that.
CoinSpot has been particularly focused on helping customers understand the issue of trust that scammers attempt to build with their victims, Stocks-Ramsay said. The exec stressed that scammers often spend hours on the phone with victims, and a simple email from the exchange could help users avoid this altogether. He added:
“One really effective way we find of breaking that trust, or at least planting the seed for the victim to question it, is talking to them and giving them that human element because that’s what the scam is doing.”
Alongside communication, education is another important component of protecting crypto users, Swyftx executive Jason Titman noted. He stressed that often, the reason why individual consumers are susceptible to being tricked into disclosing their personal data and passwords to scammers is due to a lack of education.
“It’s always been important because, as this is a new asset class, we’ve been educating our customers, particularly something that’s very relevant and important,” he noted.
The panel speakers also highlighted the importance of educating users beyond just the cryptocurrency industry.
Cryptocurrency is “just one industry within the scams ecosystem,” Stocks-Ramsay said, adding that many other industries are involved in crypto scams, including social media, banks, telecoms and others.
Related: Thailand threatens Facebook over crypto scams and other fraudulent ads
Cointree CEO Jess Renden agreed with the CoinSpot executive, stressing that cryptocurrency scams are “not crypto’s fault.” Crypto firms in Australia have been actively communicating with regulators and other businesses, be they telcos or social media platforms, she said, adding:
“Our industry is constantly, sort of, badgered saying that it’s our fault and it’s up to us. And I think all of you today have seen the measures we go through to try and protect customers.”
The news comes a few months after Australia’s major banks argued that 40% of scams involve cryptocurrency in order to defend the decisions of certain local banks that restricted some crypto transactions over scams in early June 2023.
According to data from the Australian Competition and Consumer Commission, local people lost roughly $150 million from investments where cryptocurrency was used as the payment method in 2022. The amount is up more than 160% from 2021.
Additional reporting by Cointelegraph author Tom Mitchelhill.
Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in
Politics
Sir Keir Starmer vows to defend budget decisions ‘all day long’ as farmers slam ‘disrespectful’ PM
Sir Keir Starmer has said he will defend the decisions made in the budget “all day long” amid anger from farmers over inheritance tax changes.
Chancellor Rachel Reeves announced last month in her key speech that from April 2026, farms worth more than £1m will face an inheritance tax rate of 20%, rather than the standard 40% applied to other land and property.
The announcement has sparked anger among farmers who argue this will mean higher food prices, lower food production and having to sell off land to pay for the tax.
Sir Keir defended the budget as he gave his first speech as prime minister at the Welsh Labour conference in Llandudno, North Wales, where farmers have been holding a tractor protest outside.
Sir Keir admitted: “We’ve taken some extremely tough decisions on tax.”
He said: “I will defend facing up to the harsh light of fiscal reality. I will defend the tough decisions that were necessary to stabilise our economy.
“And I will defend protecting the payslips of working people, fixing the foundations of our economy, and investing in the future of Britain and the future of Wales. Finally, turning the page on austerity once and for all.”
He also said the budget allocation for Wales was a “record figure” – some £21bn for next year – an extra £1.7bn through the Barnett Formula, as he hailed a “path of change” with Labour governments in Wales and Westminster.
And he confirmed a £160m investment zone in Wrexham and Flintshire will be going live in 2025.
‘PM should have addressed the protesters’
Among the hundreds of farmers demonstrating was Gareth Wyn Jones, who told Sky News it was “disrespectful” that the prime minister did not mention farmers in his speech.
He said “so many people have come here to air their frustrations. He (Starmer) had an opportunity to address the crowd. Even if he was booed he should have been man enough to come out and talk to the people”.
He said farmers planned to deliver Sir Keir a letter which begins with “‘don’t bite the hand that feeds you”.
Farmers’ tractor protest outside the Welsh Labour conference in Llandudno, North Wales
Mr Wyn Jones told Sky News the government was “destroying” an industry that was already struggling.
“They’re destroying an industry that’s already on its knees and struggling, absolutely struggling, mentally, emotionally and physically. We need government support not more hindrance so we can produce food to feed the nation.”
He said inheritance tax changes will result in farmers increasing the price of food: “The poorer people in society aren’t going to be able to afford good, healthy, nutritious British food, so we have to push this to government for them to understand that enough is enough, the farmers can’t take any more of what they’re throwing at us.”
Mr Wyn Jones disputed the government’s estimation that only 500 farming estates in the UK will be affected by the inheritance tax changes.
“Look, a lot of farmers in this country are in their 70s and 80s, they haven’t handed their farms down because that’s the way it’s always been, they’ve always known there was never going to be inheritance tax.”
On Friday, Sir Keir addressed farmers’ concerns, saying: “I know some farmers are anxious about the inheritance tax rules that we brought in two weeks ago.
“What I would say about that is, once you add the £1m for the farmland to the £1m that is exempt for your spouse, for most couples with a farm wanting to hand on to their children, it’s £3m before anybody pays a penny in inheritance tax.”
Read more:
Ex-Labour adviser suggests doing to farms ‘what Thatcher did to coal mines’
Farmers ‘could block ports and disrupt food supply’
Welsh farmer Gareth Wyn Jones
Ministers said the move will not affect small farms and is aimed at targeting wealthy landowners who buy up farmland to avoid paying inheritance tax.
But analysis this week said a typical family farm would have to put 159% of annual profits into paying the new inheritance tax every year for a decade and could have to sell 20% of their land.
Keep up with all the latest news from the UK and around the world by following Sky News
The Country and Land Business Association (CLA), which represents owners of rural land, property and businesses in England and Wales, found a typical 200-acre farm owned by one person with an expected profit of £27,300 would face a £435,000 inheritance tax bill.
The plan says families can spread the inheritance tax payments over 10 years, but the CLA found this would require an average farm to allocate 159% of its profits each year for a decade.
To pay that, successors could be forced to sell 20% of their land, the analysis found.
Trump’s administration could push DeFi from niche to mainstream, with crypto advocates eyeing potential pro-crypto policy shifts.
A former Conservative MP has said he felt “enormous guilt” when he found out he was the victim of a Westminster honeytrap scandal.
William Wragg resigned from the parliamentary party in April after he admitted giving out fellow politicians’ phone numbers to the suspected perpetrator of the sexting scam.
He said he felt threatened and pressured by the “catfish” after exchanging explicit photos with them.
Mr Wragg divulged the numbers to what he thought was a real person on a dating app, amid fears that the intimate images of himself would be leaked.
The former Tory party whip said he first saw news articles about the scandal when he was on a train.
The 36-year-old told the BBC: “My stomach just dropped.
“When I found out some of the things that had been going on, I just felt enormous guilt, enormous remorse.”
After the former Hazel Grove MP handed over the personal information, the catfish told Mr Wragg to vouch for their identity with their next potential victims, with the catfish telling their fresh targets they were a former researcher for Mr Wragg.
Mr Wragg agreed and this is what he feels “the most regret for” as it was “deceitful”.
Pic: PA
Panic attacks
After he was allegedly blackmailed, Mr Wragg started having panic attacks, with instances of yelling, crying, and swearing shocking his sleeping flatmates.
Police are investigating the scandal with at least 12 men with links to Westminster believed to have received unsolicited messages from the aliases “Charlie” and “Abi”.
The fake accounts were allegedly part of the scam to get MPs and other people in politics to send explicit images and other private or sensitive information.
Unlike others who were approached by the catfish accounts, Mr Wragg approached “Charlie” himself after spotting the profile on gay dating app Grindr.
And he thought the account was a real person before exchanging explicit photos with the catfish.
Suicidal thoughts
When the scandal broke, the humiliation and shame became too much for Mr Wragg.
He recounted photographers and the media camped outside his parents’ house, which is where he went to as he began to have suicidal thoughts.
Shortly after receiving medical attention, he returned to Westminster to resign as Conservative whip and from his posts on two parliamentary committees.
He had already announced he would not run in the next general election.
Keep up with all the latest news from the UK and around the world by following Sky News
Man detained
In June, a member of the Labour Party aged in his mid-20s was apprehended in Islington, north London, on suspicion of harassment and offences under the Online Safety Act.
He has since been released on bail.
Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports7 months agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Environment1 year agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway