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.
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.”
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.
Canterbury MP Rosie Duffield has resigned from the Labour Party.
The 53-year-old MP is the first to jump ship since the general election and in her resignation letter criticised the prime minister for accepting thousands of pounds worth of gifts.
She told Sir Keir Starmer the reason for leaving now is “the programme of policies you seem determined to stick to”, despite their unpopularity with the electorate and MPs.
In her letter she accused the prime minister and his top team of “sleaze, nepotism and apparent avarice” which are “off the scale”.
“I’m so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party,” she said.
Since December 2019, the prime minister received £107,145 in gifts, benefits, and hospitality – a specific category in parliament’s register of MPs’ interests.
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Ms Duffield, who has previously clashed with the prime minister on gender issues, attacked the government for pursuing “cruel and unnecessary” policies as she resigned the Labour whip.
She criticised the decision to keep the two-child benefit cap and means-test the winter fuel payment, and accused the prime minister of “hypocrisy” over his acceptance of free gifts from donors.
“Since the change of government in July, the revelations of hypocrisy have been staggering and increasingly outrageous,” she said.
“I cannot put into words how angry I and my colleagues are at your total lack of understanding about how you have made us all appear.”
Ms Duffield also mentioned the recent “treatment of Diane Abbott”, who said she thought she had been barred from standing by Labour ahead of the general election, before Sir Keir said she would be allowed to defend her Hackney North and Stoke Newington seat for the party.
Her relationship with the Labour leadership has long been strained and her decision to quit the party comes after seven other Labour MPs were suspended for rebelling by voting for a motion calling for the two-child benefit cap to be abolished.
“Someone with far-above-average wealth choosing to keep the Conservatives’ two-child limit to benefit payments which entrenches children in poverty, while inexplicably accepting expensive personal gifts of designer suits and glasses costing more than most of those people can grasp – this is entirely undeserving of holding the title of Labour prime minister,” she said.
Ms Duffield said she will continue to represent her constituents as an independent MP, “guided by my core Labour values”.