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Australia’s law enforcement agencies have issued a stark warning: criminals are misusing the country’s official cybercrime reporting system to target and drain cryptocurrency wallets belonging to unsuspecting Australians.
According to the Australian Federal Police (AFP) and the joint policing body Joint Policing Cybercrime Coordination Centre (JPC3), fraudsters are submitting fake reports via the national platform ReportCyber using stolen personal data and then posing as law-enforcement officers to coax victims into handing over crypto wallet access. They exploit the legitimacy of official systems to deceive users, then prompt them to transfer funds to fraudulent “cold storage” wallets or disclose seed phrases.
How the Scam Works
The scam typically unfolds in several steps:
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Fraudsters acquire victims’ personal details such as email addresses and phone numbers.
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They file a bogus ReportCyber incident in the victim’s name, making it appear as though the victim is already under investigation.
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The victim receives a call from someone claiming to be an AFP official. They are told they are implicated in a cryptocurrency breach and must take immediate action.
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A second call purportedly from a crypto-platform representative uses the same official reference number, reinforcing authenticity. The victim is then urged to transfer funds to a “secure” wallet. Fortunately, one recently targeted individual became suspicious and hung up avoiding loss.
Detective Superintendent Marie Andersson of the AFP explained that these scams are intentionally engineered for speed and plausible legitimacy, designed to create urgency and sow confusion.
Why This Matters
For Australians holding cryptocurrency, the implications are clear and serious:
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Trust in official systems exploited: By leveraging ReportCyber’s legitimate “third-party reporting” feature, criminals make their ruse more believable.
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Large-scale risk to crypto holders: Victims handing over access to wallets or seed phrases may lose significant sums crypto theft cannot easily be reversed.
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Regulatory pressure mounting: This kind of scam is a reminder of the evolving regulatory and enforcement landscape in Australia’s crypto sector. Authorities such as Australian Securities and Investments Commission (ASIC) and AUSTRAC have already flagged digital currencies as high-risk in money-laundering and fraud arenas.
What You Should Do to Protect Yourself
To reduce risk, crypto users in Australia should adopt these proactive measures:
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Be skeptical of unsolicited calls claiming to be law enforcement or crypto-platform support, especially if you didn’t initiate contact.
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Never disclose your wallet seed phrase or private key, even if someone claims you are involved in a cybercrime or wallet compromise.
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Check for official reference numbers or ReportCyber notifications only by independently accessing the official portal not via a caller.
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If you didn’t file a report and someone references one, hang up immediately and contact ReportCyber or call 1300 CYBER1 (1300 292 371).
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Ensure your personal data is securely stored, and enable two-factor authentication on crypto accounts and relevant email/phone services.
FAQs
Q1: What platform are the criminals abusing in Australia?
They are exploiting ReportCyber, Australia’s official online channel for reporting cybercrime, by submitting fake reports that then serve as cover for calls impersonating law-enforcement agencies.
Q2: Who is issuing the warning about this scam?
The warning comes from the Australian Federal Police (AFP) and the Joint Policing Cybercrime Coordination Centre (JPC3), which monitor cybercrime and fraud trends.
Q3: What do the scammers ask victims to do?
Typically, they ask for crypto wallet access, requests to transfer funds to fake “cold storage” wallets, or demand seed phrases actions often prompted by a sense of urgency and deception.
Q4: Will law enforcement ever ask for seed phrases or crypto wallet details?
No. Legitimate law-enforcement agencies will never ask for your wallet seed phrases, private keys, or to move your crypto to a “safe” wallet under their direction. This is a major red flag.
Q5: What if I see a ReportCyber reference number I didn’t request?
If you did not initiate the report, hang up immediately if you are contacted. Then independently access the official ReportCyber site or call 1300 CYBER1 to verify.
Q6: How can I reduce my risk of this type of scam?
Secure your personal data, enable strong authentication on your crypto and related accounts, be cautious of unsolicited communication, and treat unexpected “urgent” demands regarding your crypto as potentially fraudulent.
