The Australian Federal Police (AFP) has stepped up its efforts to combat cryptocurrency scams with the launch of Operation Spincaster, a global initiative aimed at disrupting criminal activities targeting crypto users.
Australia is continuing its war against scams, following the National Anti-Scam Centre's efforts to reduce scams, and the recent overall decline in scam losses, the AFP’s initiative is timely.
In collaboration with the blockchain data platform Chainalysis, the AFP has identified over 2,000 compromised crypto wallets belonging to Australians, shedding light on the tactics used by cybercriminals in a scam known as "approval phishing."
Approval phishing is a sophisticated scam technique where criminals trick victims into signing a malicious blockchain transaction. Once the transaction is approved, the attacker gains access to the victim's crypto wallet, allowing them to siphon tokens at will.
This scam has been responsible for stealing over $4 billion in cryptocurrency worldwide since May 2021 and is prevalent in both investment scams and romance scams. Despite the recent drop in scams in Australia, the AFP remains vigilant.
Operation Spincaster has seen participation from digital currency exchanges and public agencies across the US, UK, Canada, Spain, Netherlands, and Australia. In June 2024, the AFP-led Joint Policing Cybercrime Coordination Centre (JPC3) hosted a workshop with Chainalysis, digital currency exchanges, and law enforcement agencies to share intelligence on compromised wallets, train in tracing stolen funds, and discuss real-time scam detection.
AFP Detective Superintendent Tim Stainton emphasised the necessity of a collaborative approach.
Working together and sharing knowledge with industry, government, and law enforcement partners is crucial.
The operation has received significant support from major digital currency exchanges, including BTC Markets, Binance, Crypto.com, Ebonex, Independent Reserve, OKX, SwyftX, and Wayex. These platforms have committed to identifying Australian victims, providing support, and preventing further victimisation.
Operation Spincaster is a significant step forward in the fight against crypto scams, and with continued collaboration and vigilance, we can protect the community from these growing threats.
By Michael Bacina, Steven Pettigrove and Luke Misthos
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