Australians filed 1,810 reports of cryptocurrency-related scams in 2019, collectively totaling more than $21.6 million AU ($14.9 million USD).
According to a study by Scamwatch, an arm of the Australian Competition and Consumer Commission, younger Australians aged 25 to 34 were those most heavily affected by crypto investment scams.
According to the report:
“Cloud mining farms became a common adaptation of this type of scam. Most were Ponzi schemes, with no real cryptocurrency involved.”
It goes on to characterize cloud crypto mining as an “an incredibly resource-intensive activity” that relies on powerful computing systems to mine a coin. This is the concept scammers are building their deception on, asking people to invest in nonexistent server time or space.