In 2023, the Australian Competition and Consumer Commission (ACCC) reported that investment and cryptocurrency scams resulted in nearly $300 million in losses, impacting around 8,000 individuals.

Despite conducting due diligence, Wright found the investments appeared legitimate until all communication abruptly stopped after five months.

Among the victims was Doug Wright, a Queensland businessman, who lost nearly $1 million after being lured by an investment scam that promised high returns.

In response to the increasing prevalence of scams, the Australian government allocated $86.5 million in its 2023 budget to bolster anti-scam initiatives, which includes the establishment of the National Anti-Scam Centre.

Additionally, new legislation for a Scams Prevention Framework was introduced in September 2024, aimed at improving scam detection and prevention across banks, telecommunications, and digital service providers.

These scams are frequently orchestrated by organized crime groups that employ sophisticated techniques to manipulate their victims.

Several factors contribute to the vulnerability of Australians to scams, including financial desperation, a high level of trust in authorities, and emotional triggers such as urgency and fear.

In light of these risks, experts advise potential investors to educate themselves about investing and to diversify their portfolios to mitigate potential losses.

The ACCC underscores that everyone is at risk of falling victim to scams, particularly during periods of personal crisis or financial need.