AFP Warns: Criminals Used Official Cybercrime System to Trap Crypto Victims
AFP Warns of Sophisticated Impersonation Scheme
Cryptocurrency scammers have posed as Australian police and used official government systems to deceive victims into transferring their digital assets, the Australian Federal Police (AFP) said Thursday. The agency described the method as a sophisticated impersonation scam that abuses Australia’s ReportCyber platform, a tool for citizens to lodge cybercrime complaints.
According to the AFP, the scammers submitted fraudulent reports through ReportCyber about individuals they later targeted. They then contacted those victims directly, pretending to be police officers, and urged them to check their supposed reports on legitimate government websites. This gave the operation an appearance of credibility and convinced some victims that they were dealing with genuine law enforcement.
In one case, the scammers told a victim to expect a follow-up call from a “representative” of a cryptocurrency firm who would provide documentation to prove authenticity. The second caller attempted to persuade the victim to move funds from their platform wallet into another wallet under the scammer’s control. “Thankfully the target became suspicious and hung up,” the AFP said.
Investor Takeaway
Police Say Scams Are Growing More Convincing
AFP Detective Superintendent Marie Andersson said the scammers had fabricated stories about arrests and investigations linked to crypto breaches to pressure victims. She said the verification steps used by the scammers mirrored real police procedures, which made the ruse “highly convincing.”
“If you’re contacted by someone about a ReportCyber report you didn’t lodge or authorise, terminate the call and notify ReportCyber,” Andersson said. She reminded Australians that legitimate officers would never ask for access to crypto wallets, viewd phrases, bank accounts or other financial information. Andersson added that the rise of impersonation scams reflects a wider trend of more advanced online fraud targeting both individuals and businesses.
Authorities Step Up Crypto Crime Enforcement
The AFP has increased its efforts to trace and seize crypto-linked criminal proceeds. In October, it said it had recovered a coded cryptocurrency wallet backup containing 9 million Australian dollars ($5.9 million) believed to be tied to illegal activity. The find followed several high-profile enforcement actions targeting digital asset crime in Australia’s financial system.
Australia’s Securities and Investments Commission (ASIC) has also intensified its crackdown on online scams, reporting that more than 14,000 scam websites have been taken down since July 2023, including over 3,000 linked to cryptocurrencies. The regulator has partnered with telecom providers and financial institutions to disrupt the channels through which scammers contact victims.
In July, authorities in Tasmania found that the top 15 users of crypto ATMs in the state were all scam victims, collectively losing about A$1.6 million. The cases involved schemes where victims were tricked into purchaseing cryptocurrencies and sending them to wallets controlled by fraudsters posing as government or financial representatives.
Investor Takeaway
Public Awareness and Prevention
The AFP urged Australians to remain cautious about unsolicited calls or emails referencing police reports or cryptocurrency investigations. ReportCyber, managed by the Australian Cyber Security Centre, remains the legitimate channel for reporting incidents but has now become a target of impersonation by fraud groups exploiting public trust in official systems.
Officials said increased public awareness is crucial, as technical controls alone cannot prevent manipulation of legitimate platforms for criminal purposes. Law enforcement agencies are sharing intelligence with local banks and crypto platforms to identify suspicious transfers linked to impersonation scams.
Authorities expect similar scams to continue as digital asset adoption grows. The AFP said it is coordinating with the Australian Cyber Security Centre and the financial sector to improve cross-platform alerts and reduce the success rate of impersonation schemes that use government-linked tools as bait.
