The Growing Threat of Global Crypto Crimes

The rapid advancement of technology has led to an increase in cryptocurrency-related crimes across the globe. In recent weeks, countries like Australia and Malaysia have been at the forefront of combating these issues. The Australian Securities and Investments Commission (ASIC) has recently taken down over 600 crypto scams in the past 12 months.

The regulator expressed concerns that artificial intelligence (AI) is making it increasingly difficult for consumers to detect fraudulent schemes. With AI-generated deepfakes and fake endorsements from celebrities like Elon Musk, scammers are luring unsuspecting investors into fraudulent schemes, resulting in significant financial losses.

In 2023 alone, Australians lost approximately $1.3 billion to investment scams, making it the leading type of financial fraud in the country. ASIC has been actively working to curb these activities, taking down an average of 20 scam websites daily. Despite these efforts, the evolving nature of AI and other technologies continues to pose challenges for regulators and consumers alike.

Meanwhile, in Malaysia, authorities have been tackling a different aspect of cryptocurrency-related crime in the form of electricity theft linked to Bitcoin mining.

Recently, Bernama, the country’s national news agency reported that the Malaysian police arrested seven individuals for allegedly stealing of electricity to power their Bitcoin mining operations. This crackdown is part of a broader effort to address power theft associated with crypto mining, which has caused significant financial losses for the country.

Crypto mining activities have surged in Southeast Asia following China’s ban on crypto mining in 2021, with Malaysia becoming a popular destination due to its competitive electricity prices and existing infrastructure. However, these illegal operations have led to substantial losses, with Malaysia’s deputy energy minister revealing that crypto miners stole at least RM3.4 billion ($777 million) worth of power between 2018 and 2023.

On a positive note, experts suggest that while AI now plays major role in facilitating cryptocurrency related crimes, it might also play a crucial role in combating crypto-related fraud through the development of tools that help consumers identify red flags in investment opportunities.

As cryptocurrency gains traction, the urgency for stronger regulations and innovative approaches, including the use of AI, becomes clearer. Australia and Malaysia highlight the global struggle to address the darker aspects of cryptocurrency, where technology can be both a force for progress and a tool for exploitation.