Crypto Crimes on the Rise in Australia

Hacker on laptop display. (vicky gharat/Pixabay)

Australian cyber authorities have warned people and local businesses to take precautions against cybercriminals as they have become more sophisticated in using digital currencies and other methods in their exploit schemes.

The Australian Transaction Reports and Analysis Centre (AUSTRAC), which is responsible for detecting, deterring, and disrupting criminal abuse of the financial system, has released two new guides to help local businesses deal with ransomware attacks and avoid being targeted by criminals using cryptocurrencies, or crypto for short.

AUSTRAC Chief Executive Nicole Rose said lenders should make a report when they suspect that somebody is using digital currencies to launder money, finance terrorism, cash in on scams or pay ransoms.

The Australian government is trying to keep pace with rising threats from Russian-linked hackers and the fast-changing digital economy.

At the same time, criminals are making use of the increasing popularity of crypto to commit crimes and evade law enforcement detection.

Australia and other Five Eyes intelligence partners—the United States, United Kingdom, Canada and New Zealand–have issued advice on enhancing cybersecurity to defend against Russian cyberattacks on critical infrastructures, including power grids, and hospitals.

The Australian Prudential Regulation Authority (APRA) has also released new guidance requiring financial institutions engaging in activities associated with crypto-assets to have a better understanding of the potential risks and apply robust risk control management.

Apart from the highly volatile nature and the material risk of crypto, APRA chair Wayne Byres also warned financial institutions of the underlying investment and credit risks when they increase their exposure to crypto-assets.

A photo shows some cryptocurrencies. (Pixabay)

Meanwhile, cybercriminals are using crypto to facilitate schemes such as romance, investment, and job scams.

Government agency Scamwatch received more than 286,000 scam reports during 2021, which resulted in over $323 million (US$238 million) in financial losses.

In March 2022, Australian cyber victims, of whom 87 percent are male, lost $95 million to scams, the largest monthly amount ever recorded.

Cyber experts at Proofpoint, an enterprise security company, said that mobile app scams were the leading cybercrime threat in March, with men aged 25 to 34 most likely to hand over personal and banking information.

Company emails are another weak spot, where criminals use fraudulent messages known as phishing to infiltrate networks to steal private information and deploy bugs.

Proofpoint vice president Crispin Kerr said crypto had given criminals another means to target Australians.

“Cybercriminals have become more sophisticated, even setting up fake cryptocurrency exchange platforms to carry out crypto-jacking, tricking people into using their computers and mobile devices to mine cryptocurrency against the users’ will,” he said.

Blockchain Australia CEO Steve Vallas said businesses needed to be better aware of and protect themselves from the risks of ransomware.

Ransomware is a type of malicious software that locks out devices or personal data and demands users to make payments to regain access. The use of crypto has made ransomware harder to track.

Around 500 ransomware attacks were reported in the 2020-2021 financial year, an increase of 15 percent compared to the prior year.

According to Defence Minister Peter Dutton, Conti, operated by a Russian criminal gang, is the most active ransomware in Australia.