Australian Crypto Exchanges Prioritize Communication to Prevent Scams, Highlighting Importance of Education
Summary:
Cryptocurrency exchanges in Australia are stepping up efforts to prevent scams by improving communication with users. Executives from major platforms like Cointree, CoinSpot, and Swyftx discussed measures taken to protect users at a recent fintech conference. They emphasized the importance of educating users and engaging in conversations to break trust between scammers and victims. The article highlights the involvement of other industries in crypto scams and the increase in losses from cryptocurrency-related investments in Australia.
Cryptocurrency exchanges in Australia are intensifying their efforts to prevent scams by improving communication with users. Local crypto firms have recognized that effective communication can help "break trust" between victims and scammers. Executives from major Australian crypto platforms like Cointree, CoinSpot, and Swyftx recently convened at the Intersekt 2023 fintech conference in Melbourne to discuss the issue of scams and fraud in the industry. During the panel, they discussed various measures such as automated and manual Anti-Money Laundering (AML) checks, investigations, education, and communication to protect users from fraud. CoinSpot's AML officer, Jedda Stocks-Ramsay, stressed the importance of engaging in conversations with customers to address the issue of scams as it has proven to be effective. She highlighted the social engineering aspect of scams and emphasized that scammers build trust through prolonged conversations with victims. Stocks-Ramsay added that a simple email from the exchange can help users avoid falling into scams. Education is also crucial in safeguarding crypto users, according to Swyftx executive Jason Titman. Lack of education often makes individual consumers vulnerable to disclosing personal data and passwords to scammers. The panel speakers emphasized that educating users goes beyond the cryptocurrency industry as crypto scams involve other sectors such as social media, banks, and telecoms. Cointree CEO Jess Renden agreed that cryptocurrency scams are not the industry's fault and that exchanges actively collaborate with regulators, telcos, and social media platforms to protect customers from scams. This news follows the disclosure by Australia's major banks that 40% of scams involve cryptocurrency. Data from the Australian Competition and Consumer Commission revealed that losses from investments involving cryptocurrency as a payment method amounted to approximately $150 million in 2022, a significant increase of over 160% from 2021.
Published At
8/31/2023 10:25:02 AM
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