The Australian Federal Police (AFP) are investigating a major crypto phishing scam that has compromised at least 2,000 Australian-owned cryptocurrency wallets. This investigation follows Operation Spincaster by Chainalysis, which uncovered the widespread exploitation of these wallets through “approval phishing” tactics.
AFP Detective Superintendent Tim Stainton announced the intelligence gathered from Operation Spincaster has illuminated new tactics used by cybercriminals to defraud Australians. This operation focuses on identifying cybercrime victims and disrupting offenders in Australia.
Approval phishing scams involve tricking users into signing malicious transactions, allowing scammers to transfer tokens to their own wallets. These scams are often linked to fraudulent investment schemes promising high returns or romance scams, also known as pig-butchering scams. Since May 2021, victims have lost approximately $4 billion to these scams.
Chainalysis is collaborating with the AFP’s Policing Cybercrime Coordination Center (PCCC) to resolve ongoing investigations. A recent workshop hosted by PCCC staff and Chainalysis delved deeper into Operation Spincaster, providing intelligence on compromised wallets, training on tracing stolen funds, and guidance on detecting ongoing scams in real-time.
Cryptocurrency exchanges, including BTC Markets, Binance, Crypto.com, Ebonex, Independent Reserve, OKX, SwyftX, and Wayex, are also working to prevent Australians from falling victim to these scams. In response, Australian banks have implemented their own cryptocurrency scam prevention measures over the past 12 to 14 months, including imposing restrictions or complete blocks on transfers to cryptocurrency exchanges. The “Big Four” banks—Commonwealth Bank, National Australia Bank, Westpac, and Australia and New Zealand Banking Group—along with Bendigo Bank and HSBC, are part of this initiative.
In 2023 alone, Australians lost up to $840 million to investment scams, according to the country’s competition and consumer regulator. The AFP’s ongoing investigation aims to bring justice to victims and prevent further losses in the future.
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