S
Sean Camara
Guest
Don't click on that Facebook ad! 69-year-old cancer sufferer loses $350,000 to a “celebrity” cryptocurrency scam
These days, it seems like scams are everywhere. You can't turn on the news or open your email without being bombarded by stories of people being cheated out of their life savings. And unfortunately, it's only getting worse.
Scammers are constantly evolving, finding new ways to target unsuspecting victims. And one of the latest trends is victimizing people who are looking for investment opportunities.
Such has been the unfortunate case of Brisbane grandfather and cancer patient Phillip Savage who fell victim to a sophisticated scam involving a seemingly legitimate online investment venture.
The 69-year-old, who has lost a lung from battling liver cancer, said that he had lost $350,000 worth of life savings after scammers tricked him into "investing" in a cryptocurrency scheme.
For our members who are not aware of what cryptocurrency is, it is a form of digital or virtual money that uses encryption — the process of transforming data and information into code — to protect it, making it nearly impossible to counterfeit or double spend.
Unlike other currencies that are governed by the banks of the countries that issue them, cryptocurrency is managed by decentralised systems without any significant government or bank oversight.
69-year-old cancer sufferer Phillip Savage lost $350,000 worth of life savings after falling victim to a sophisticated scam. Credit: A Current Affair/Nine.
Mr Savage recalled that he was simply scrolling through Facebook when he stumbled upon an advertisement featuring a fake celebrity endorsement.
He shared that he immediately received a phone call after he clicked on the ad.
"They were bringing up ideas and money numbers which mesmerised me - I thought well, these guys sound pretty good," the 69-year-old said.
"It shattered my life. It was money that I had set aside for my grandchildren."
Mr Savage made modest initial investments, but he kept falling for tricks after the cunning con artists showed him bogus returns, leading him to make larger investments.
He said that he had lost any hope of ever retrieving the money.
In 2021, losses from cryptocurrency investment scams in Australia almost tripled, increasing by 270% to $99 million, with 4,730 rackets reported, according to a study issued by the Australian Competition and Consumer Commission (ACCC) this week.
"These scams generally involve scammers setting up fake investment and cryptocurrency trading platforms, sometimes impersonating legitimate, well-known websites, to steal money from people looking to invest in cryptocurrency," the report read.
Scammers are taking advantage of the popularity of cryptocurrency investments to trick unsuspecting people who are looking for other sources of income. Credit: Shutterstock/TY Lim.
While cryptocurrency investment is becoming a popular (and in some cases, possibly legitimate) source of income for many people, scammers are taking advantage of its popularity to commit fraud to unsuspecting people who are just looking for ways to earn more money.
The ACCC also noted that not all people are knowledgeable on cryptocurrency transactions — which are more difficult to track than standard bank account transfers — so it is easier to fall victim to this scheme.
Delia Rickard, ACCC deputy chair, said: "Urgent work is needed to combat cryptocurrency investment scams."
Sadly, this is also not the first time we reported an incident like this. Earlier this year, we shared the story of a Sydney woman who has also fallen to a similar scam after clicking on an advert, promoting a seemingly legitimate cryptocurrency investment scheme.
According to Chris Goldsmid, the acting assistant commissioner for cyber command of the Australian Federal Police, cryptocurrency scammers frequently participate in money-laundering operations.
He said: "We certainly see cryptocurrency as an emerging threat."
"We see it as a laundering mechanism where the criminals will steal money and then move it into cryptocurrency to facilitate the laundering process."
Last year, the biggest losses were reported by people over 65. The older age group was said to account for 27.3% of fraud losses, with reports suggesting that fraudsters are taking advantage of the older Aussie’s lack of understanding of the new technology.
Stay safe out there, folks! We recommend tuning into the Scam Watch section of the SDC website to stay on top of the latest scamming tactics and learn how you can avoid falling victim to them.
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