As cryptocurrency use becomes more common in AU, most of the gambling regulators in the country started overseeing the licensing operators on the use of crypto as a viable payment method.
On the one hand, exploring cryptocurrencies in the iGaming industry is a great way to address shifting consumer preferences. As seen from online casino Australia sites, many Aus players have already taken advantage of this opportunity by enjoying interactive gambling with fewer restrictions. On the other hand, cryptocurrency has won itself a bit of bad fame due to a record number of fraudulent schemes related to online live casino Australia investments this year.
According to recent data from Scamwatch, crypto scams have skyrocketed in the first half of 2022. Managed by ACCC, Australians have lost 242.5M AUD due to fraudulent schemes related to investments (194.5M AUD) and cryptocurrencies (48M AUD) since the start of this year. These numbers mark a sharp 165% increase when compared to the same time interval the previous year.
Besides, the 194.5M AUD in losses related to investments is 35% higher than the total damage for the whole of 2021, which amounted to 68M Australian dollars. From Scamwatch’s data, crypto is observed as the most common payment option used for fraudulent schemes related to investments. More so, the ACCC’s report points out that the true losses may even be higher in the remainder of 2022, so they urged Aus punters to beware of investment scams.
According to the report, prime targets for investment scams are consumers that are unfamiliar with the complexities of crypto trading. The most vulnerable category to intruders was people over 50 and under 65 years old.
On that topic, Delia Rickard, the deputy chair of ACCC, revealed that text messaging was the most popular method used for fraud activities this year. Between January 1 and July 1, 2022, a text message was used for some 54% of the scams. This figure significantly surpassed calls, which were previously the most common method used by scammers.
In May 2022, the Commonwealth Bank of Australia, one of the largest banks in the country, postponed the introduction of crypto trading due to the crypto scams and the uncertain position of regulators. According to Matt Comyn Golden Casino Australia, the CEO of the bank, the high volatility of the cryptocurrency market in recent days has confirmed the need to suspend the first pilot program. As for the second program, the Australian Securities & Investments Commission (ASIC) insisted on future reforms regarding Aussie consumer protection conditions.
Online live casino Australian gaming industry is regulated by state and territory authorities. This means that each region in AU has its regulatory agency that monitors gambling operators and their compliance with existing laws. For instance, these include https://responsiblegambling.vic.gov.au/resources/gambling-victoria/ in Victoria Queensland’s gaming industry. But the different regions in the country all work in compliance with the best practices and have their residents’ well-being in mind.
This way, the Northern Territory Racing Commission launched a public consultation seeking input from Australian financial institutions to invest in fraud prevention programs for sports wagering and paying winnings by cryptocurrencies. And here are the potential reforms of this report.
First of all, to decrease and prevent further crypto scams, ACCC representatives urged banks to invest in programs by checking whether the recipient’s name and account number match when making online transactions. According to Gerard Brody, executive director of the Consumer Action Law Center, the key feature of the pilot was to shift the responsibility from individual AU customers to banks when it comes to fraud losses.
Finally, financial institutions are actively promoting the use of PayID technology in fraud prevention programs. This tech will allow customers to see the name attached to the Bank State Branch (BSB), bank ID, and account number, among others.
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