Simon Callaghan, the recently appointed CEO of Blockchain Australia, emphasizes the importance of joint efforts in tackling the growing issue of cryptocurrency scams, with a particular focus on social media and telecommunication platforms where such frauds typically emerge.

At the concluding day of Australian Blockchain Week held in Melbourne on June 30, Callaghan set forth the association’s renewed commitment to help thwart cryptocurrency scams, alongside other initiatives. He underscored the imperative need for collaboration with the banking sector and government authorities to safeguard consumer interests.

Despite these proposed collaborations, Callaghan pointed out that scams usually sprout from social media and telecommunications, thus necessitating law enforcement initiatives at these initial contact points. He clarified that cryptocurrency is often a minor component or an endpoint in the scam lifecycle, with the fraud commencing much earlier in the chain.

Callaghan admitted the global struggle to effectively counteract cryptocurrency scams. Nevertheless, he expressed optimism that Australia could pioneer such efforts and become a role model for other nations. If successful, this could form the groundwork for a global initiative, he suggested.

Cryptocurrency scams have been a contentious topic in Australia lately. Since May, two leading Australian banks have introduced restrictions or even prohibitions on certain payments to cryptocurrency exchanges, owing to the escalating scam menace.

The Australian government has also expressed its commitment to tackle this issue, with the Australian Competition and Consumer Commission (ACCC) readying to inaugurate its National Anti-Scam Center on July 1. The ACCC asserts that the center will pool expertise and resources to preempt scammers from targeting Australians and enhance public awareness about scam evasion.

Trevor Power, an Assistant Secretary at the Australian Treasury, affirmed on June 26 the government’s substantial investments in reducing scams, noting that the National Anti-Scam Center would primarily focus on crypto-related scams.

Earlier this week, Blockchain Australia declared its intent to analyze scam data gathered from cryptocurrency exchanges and consequently share best practices for scam and fraud prevention. As the paramount organization for blockchain in Australia, Blockchain Australia represents 111 blockchain-affiliated companies operating in the country, as per the firm’s website.