Immunefi Report Shows Losses from Crypto Hacks Declined in Q1 of 2024

TRM Labs Join Forces with Swyftx to Address Crypto Scam in Australia

As crypto scams increase by double digits year-on-year, the government and critical industrial players have joined forces to address the risk. On Monday, November 28, the prominent blockchain analytic firm TRM Labs partnered with Australian crypto exchange Swyftx to mitigate crypto-related scams.

The partners launched the world’s first trial program that rewards the user for maintaining the required security measures that prevent crypto scams. The program will also provide the crypto maximalist in Australia training programs on strategies to avoid falling into the scammers’ trap.

TRM Labs Partners with Swyftx

In the primary phase of this program, TRM Labs and Swyftx will introduce innovative security features to crypto accounts. According to the report, the newly launched security program will reward the Aussies around $10 for activating the two-factor authentication feature on their crypto accounts.

The reward aims to motivate the Aussies to complete the security measures. According to the announcement, the crypto exchange confirmed that around 2000 customers with the two-factor authentication enabled feature in the crypto account and who have completed the security course will receive rewards.

Interestingly, the crypto exchange outlined the scope of the proposed training, which will include reviewing different types of investment scams and strategies to identify scams and report them to the authorities.

The report stated that the training material will be available on the Swyftx learn platform. Also the partners  advised the customers to download the chainabuse website to report cases of crypto scams to the authorities.

The Chainabuse platform encourages customers to report unlawful crypto activities to the regulators.This platform allows other users to review the reported cases and gather substantial evidence from the public concerning the matter. Beyond this,TRM Labs plans to leverage its anti-fraud tools to address crypto crimes.

Factor Contributing to Increase in Crypto Scam

For years, the San Francisco-based blockchain analytic firm has supported multiple regulatory agencies and law enforcers in addressing financial crimes in both the public and private sectors.

In 2022, the TRM Labs observed that approximately $9 billion crypto assets were channeled to unlawful schemes. The TRM report illustrated that crypto assets worth approximately $221 million were lost in fraudulent schemes.

The rise of crypto crime forced TRM Labs and Swyftx to devise effective strategies to combat financial crimes. A review of the newly launched program demonstrated that the trial will assess how to address investment fraud through rewards and training.

Commenting on this, the chief operating officer at Swyftx, Jason Titman, revealed that the crypto exchange has adopted securities measures to address crypto crimes. The executive was pleased to state that the security measures have prevented the scammers from heisting customers’ assets worth AUD $3 million.

Titman admitted that despite the “clever” approaches used by scammers to steal customers’ funds, Swyftx vows to work around the clock to safeguard the customer’s assets. The executive confessed that the crypto exchange was ready to confront the scammers in a compliant manner.

Preventive Measures to Address Crypto Scam

Titman stated that with the dynamism of the financial industry, security has become a top priority in the crypto sector. The executive predicts that to attain the desired level of blockchain adoption, crypto firms need to explore ways to restore the customers’ trust.

He admitted that the customers lost confidence in the crypto sector due to the repetitive crypto scams and bearish market that exposed them to financial losses. Titman regretted that the scammers have turned to different social media platforms to lure customers to their dubious scheme.

From social media, the official anticipates that the scammers will launch unlawful activities in the banking system and crypto exchanges. He laments that if the scammers manage to weaken the financial sector, then it will be necessary for everyone to participate in  creating a secure environment for crypto assets.

He stated that before the crypto scam reaches a perilous position, the Aussie crypto proponents should implement the three preventive measures. Firstly, the customers are encouraged to do their due diligence before investing in a crypto investment.

The executive advised the customers to be aware of the latest trends in the crypto sector to differentiate the scams from genuine investments. He added that if the customers interact with suspicious crypto activity, the matter should be reported to the relevant authority.

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