Fake investment offers use Andrew Forrest, Karl Stefanovic in $321m Australian fraud losses

Already in 2022, Aussies have lost $321m to cryptocurrency scams including those falsely claiming Karl Stefanovic and Andrew Forrest have made a killing from bitcoin trading.

Australians have reported losing a stunning $321 million to crypto-related scams so far this year.

When compared to the same period of 2021, that’s a 150 per cent surge.

The huge jump in losses reported to the Australian Competition and Consumer Commission’s Scamwatch service can be revealed as another regulator urges the public to be ultra-vigilant when it comes to cryptocurrency.

“If it doesn’t sound quite right, trust your intuition and don’t put your money into these things,” said Australian Securities and Investments Commission deputy chair Sarah Court.

“You’ve got to be extra wary.”

ASIC deputy chair Sarah Court. Picture: Supplied

Ms Court said it was very difficult for authorities to retrieve money lost to investment scams because the operators are typically overseas.

“Crypto makes it even harder,” she added.

“The main way to disrupt scammers is to get people to be suspicious and cynical.

“That’s why we are trying to give some pointers as to why something might be a scam,” Ms Court said.

Telltale signs that what you are being offered is bogus include:

- the offer came out of the blue;

- the crypto trading app being promoted isn’t in the Google Play or Apple store;

you have to pay them before they pay you; or

it relates to a celebrity with no connection to crypto.

Billionaire businessman Andrew Forrest is suing Facebook in the US, alleging it “co-developed” scam crypto ads that leveraged his profile and reputation to fleece Australians of millions of dollars.

“Since April 2019 Facebook’s advertising business has co-developed the scam crypto ads, which contain his name, images, and videos without his consent,” lawyers for Mr Forrest claim in a filing lodged in the US District Court in California.

A fake social media post associating Andrew Twiggy Forrest with a scam investment scheme. Picture: Facebook

In the case, Mr Forrest’s lawyers are arguing that the court should apply Australian law.

“The scam crypto ads and the harm they inflicted occurred in Australia,” they say.

“The ads, co-developed by Facebook’s advertising business, targeted Australian citizens. (Mr) Forrest is aware of many Australians who saw the ads and lost millions of dollars. Facebook deliberately and improperly puts itself beyond the reach of Australian courts and ordinary Australians.”

In a filing lodged last month, Facebook described that argument as “near-frivolous” and contended that it did not co-develop the ads.

The case is yet to go to trial.

Originally published as Fake investment offers use Andrew Forrest, Karl Stefanovic in $321m Australian fraud losses