A University of Queensland study has identified an urgent need for high quality, online information from trustworthy sources to help educate investors on the risks of cryptocurrency and combat the rise in crypto scams.Uni of Queensland Highlights Need for Education on Crypto Scams
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The study found that two groups of investors are at increased risk from crypto scams — one being socioeconomically disadvantaged and the other not.
Newsflash: unsolicited advice from social media may not be the best way to safely invest in crypto.
A new study from the University of Queensland (UQ) has found that lack of access to quality online information from trustworthy sources, not socioeconomic status, is the most important risk factor for falling victim to a cryptocurrency scam.
The study, which was led by Associate Professor Levon Blue at UQ’s Office of the Deputy Vice-Chancellor Indigenous Engagement, identified an urgent need for more online educational resources to help Australians avoid falling victim to cryptocurrency scams.
“The number one place people learned about cryptocurrency was social media,” Dr Blue said.
Study Finds Two Major Groups Vulnerable to Crypto Scams
This study involved a survey of 745 Australians who had purchased cryptocurrencies and / or non-fungible tokens (NFTs). Out of this survey, two groups were identified as more likely to fall victim to crypto scams—one was socioeconomically disadvantaged while the other was not.Uni of Queensland Highlights Need for Education on Crypto Scams
Dr. Blue described the first of these at-risk groups as “more likely to be female, Indigenous, casual or part-time workers, renters, a high school or below education or with English as a second language – so with a lot of features we associate with socioeconomic disadvantage.”
In the study this group reported that they were “influenced by social media hype to buy crypto and lacked sufficient financial or IT literacy.”
By contrast Dr. Blue said the other group had many hallmarks of socioeconomic advantage, such as “university education, full-time work, being non-Indigenous or owning their home or paying off a mortgage.”
This group described themselves as being more financially literate, and according to Dr. Blue they may have been complacent to the risks of crypto, assuming “they wouldn’t become a scam victim.”
Crypto Scams Thriving in Australia Amid Information Vacuum
According to Dr. Blue, Australians lost over $170 million to crypto scams in the past year:
While this is a worrying figure it is still only a relatively small fraction of the $2.7 billion the ACCC says was lost to all scams. Nevertheless, Dr. Blue says it’s important that action is taken now to limit the growth of crypto scams by educating potential investors about the risks of crypto and providing useful, accurate and trustworthy information:
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