By Michael Scott
A recent study by the University of Queensland (UQ) reveals the critical need to enhance education on crypto scams in Australia.
The recent findings from the UQ study show that advancing education on crypto is necessary for Australia to bridge the apparent inadequacy in schools, universities, and vocational studies. The UQ found the need to shift educating the public concerning crypto scams from the present individual focus to trusted independent sources.
The UQ research discovered that the ideal solution to avert vulnerability to crypto-related scams is enhancing the quality of online financial education that reliable sources should provide.
Poor-Quality Information Aggravates Crypto Scams in Australia
Scams targeting the digital asset class adversely affect holders from all socioeconomic levels. The effectiveness of countering scams is reliant on the decision makers who are often misguided by poor-quality information, the university’s study found.
The UQ research suggests that a segment of the Australian population has two “at risk” groups vulnerable to scams. Notably, the scammers target individuals who have socio-economically disadvantaged backgrounds. The UQ associate professor Levon Blue indicated in a Sunday statement that financially literate individuals with a university education are susceptible to scams.
The typical reason individuals within the two groups fall for scams is that they decide based on poor information, UQ discloses. Blue observes that social media is where individuals learn about crypto.
UQ research discovered that it is proving problematic for users who fall for scams and misleading endorsements that involve crypto. The study singled out false endorsements involving digital assets, often on social media platform X (formerly Twitter).
The research acknowledges the prevalence of high-profile scams involving digital assets since the onset of 2024. The bad actors have tapped the X platform alongside the celebrity accounts for the hackers to gain access to the shill meme coins often based upon Solana.
Australia boasts high crypto adoption rates and accelerated growth. Notably, over a quarter of Australians (25.6%) own crypto per Statista data. The high adoption rates make Australia one of the top-ranked nations among the developed for crypto ownership.
With the high ownership rates, crypto-based scams can threaten the broad cross-section of society. For instance, according to UQ research, the country lost $114 million, translating to an AUD $171 million loss in 2023.
Blue adds that the UQ findings illustrate that online financial education via trusted independent sources is urgent to facilitate combatting scams. Doing so urgently will help keep Australians and digital assets safe.
AI and ASIC Hindering Crypto Scams Awareness
The UQ research indicates that technologies tapping AI make it challenging to ascertain the quality of information conveyed on social media.
ABC Australia’s publication in April highlights how deep fake clips imitating well-known personalities are often featured on social media. Such yields confidence in the content to sign up for the platforms that such celebrities appear to endorse.
The UQ research spotlights regulatory bodies’ failure to help Australians safeguard themselves from risk. The Guardian publication last year illustrates that the Australian Securities and Investment Commission (ASIC) was slow in response. Further, the report indicated inadequate skills and crypto knowledge since initiatives flagged as suspected pyramid schemes were labeled legitimate and reputable businesses in Australia.
The University of Queensland’s findings demonstrate the pressing need to establish a robust and reliable framework to advance crypto education and regulation in Australia. Doing so will help improve financial education quality and guarantee swift regulatory action to shield citizens against crypto scam threats better.