According to the Australian Federal Police (AFP), over 2,000 Australian-owned cryptocurrency wallets have been hacked by foreign fraudsters, resulting in the theft of millions in digital assets.

The Australian Financial Review reported that these wallets were compromised through phishing scams, which trick victims into authorizing unauthorized token transfers.

This alarming trend is part of a broader initiative known as Operation Spincaster, aimed at combating cybercrime globally and led by Chainalysis.

Investigations from Operation Spincaster have generated over 7,000 leads and revealed approximately $162 million in losses due to crypto fraud.

The rise in bitcoin scams has prompted increased vigilance among both authorities and the public in Australia.

Experts warn that phishing scams remain a significant threat in the cryptocurrency space, with over 260,000 individuals losing $314 million to such scams in the first half of this year.

Hackers exploit system vulnerabilities to drain victims' funds, leading to substantial financial losses for unsuspecting users.

In light of these threats, crypto users are advised to implement strong passwords, enable two-factor authentication, and exercise caution regarding phishing emails.

The AFP and the Joint Policing Cybercrime Coordination Centre (JPC3) are spearheading efforts to tackle digital fraud and scams.

A recent report from the Australian Transaction Reports and Analysis Centre (AUSTRAC) highlights the increasing criminal use of cryptocurrency in Australia.

Operation Spincaster involves collaboration among six countries, including the US, UK, Canada, Spain, the Netherlands, and Australia, underscoring the extensive nature of these scams.

Ongoing investigations and operations are focused on mitigating risks associated with digital fraud and protecting Australian citizens.