Key takeaways:
- Following a wave of crypto phishing scams that have affected at least 2,000 Australian-owned crypto wallets, the AFP claims to be looking into losses from these schemes.
- Operation Spincaster uses training, resources, and knowledge to combat these permission phishing schemes.
Following a wave of crypto phishing scams that have affected at least 2,000 Australian-owned crypto wallets, the Australian Federal Police (AFP) claims to be looking into losses from these schemes.
According to the AFP, at least 2,000 Australian-owned crypto wallets have been affected by a recent wave of crypto phishing scams, which is looking into losses from these schemes.
It comes after a Chainalysis probe known as Operation Spincaster, which discovered that “approval phishing” techniques have been used to access thousands of Australian crypto wallets. In a statement released on August 4, AFP Detective Superintendent Tim Stainton said:
“The intelligence we have gathered collaboratively throughout Operation Spincaster has shed a clear light on new tactics being used by cybercriminals in their continued efforts to defraud Australians.”
Operation Spincaster uses training, resources, and knowledge to combat these permission phishing schemes.
In an approval phishing scam, the perpetrator deceives the victim into signing a malicious transaction, which enables the perpetrator to move the victim’s tokens to a desired wallet address.
It is particularly prevalent in romance scams, sometimes known as “pig-butchering scams,” or fraudulent investment schemes that promise large profits. Since May 2021, victims of approved phishing schemes have lost almost $4 billion.
In order to conclude ongoing investigations, Chainalysis is collaborating with the AFP’s Policing Cybercrime Coordination Centre.
The partnership was formed as a result of a workshop that PCCC officials and Chainalysis conducted to learn more about Operation Spincaster and how to better defend Australians.
“The workshop involved Chainalysis sharing intelligence about compromised wallets, training on tracing stolen funds, guidance on detecting ongoing scam attempts in real time, and discussions about how to contact and support victims of approval phishing.”
The Australian Financial Press reported that crypto exchanges BTC Markets, Binance, Crypto[.]com, Ebonex, Independent Reserve, OKX, SwyftX, and Wayex also attempt to shield their countrymen from these frauds.
Over the past 12 to 14 months, Australian banks have taken matters into their own hands by restricting or completely blocking payments to crypto exchanges.
This comprises Bendigo Bank and, more recently, HSBC. The “Big 4” banks include Commonwealth Bank, National Australia Bank, Westpac, and Australia and New Zealand Banking Group.
The Australian Competition and Consumer Commission estimates that Australians lost up to $840 million in investment scams in 2023.
