Approval phishing scams occur when scammers trick the user into signing malicious transactions that force the victim to transfer their crypto assets to their chosen wallet address.

This type of fraud is commonly known as “hog slaughter scams” as part of fake investment opportunities or romance scams promising high returns.

The Australian Federal Police has been facing increasing concern about crypto scams in recent times. Police say many Australian-based crypto wallets have been targeted by such scams in recent months and losses are increasing.

Operation Spincaster, run by Chainalysis, examined these fraud methods in more detail, revealing how thousands of Australian wallets were exploited through these tactics.

“The intelligence we collected throughout Operation Spincaster has clearly highlighted new tactics cybercriminals are using in their efforts to defraud Australians,” AFP Detective Supervisor Tim Stainton said in a statement on August 4.

“This will be a key part of our efforts to identify victims of cybercrime and disrupt criminals in Australia,” Stainton said. Various strategies such as education, tools and training are used to prevent such scams.

Approval phishing scams are often used in fraudulent schemes promising high-yield investment opportunities or romantic relationships. By tricking users into signing malicious transactions, scammers transfer victims’ crypto assets to their own wallets.

These types of scams are described as a type of scam often referred to as “hog slaughter scams” ​​and cause victims to lose large amounts of money.

It is stated that victims have lost approximately 4 billion dollars due to approval phishing scams since May 2021. Chainalysis is partnering with the Australian Federal Police’s Policing Cybercrime Coordination Center (PCCC) to combat these types of scams.

PCCC staff held a workshop with Chainalysis to delve deeper into Operation Spincaster and improve ways to protect Australians.

The workshop included discussions on the intelligence Chainalysis provides on compromised wallets, training on tracking stolen funds, a guide to detecting real-time fraud attempts, and how to contact approval phishing victims.

Additionally, cryptocurrency exchanges BTC Markets, Binance, Crypto.com, Ebonex, Independent Reserve, OKX, SwyftX and Wayex are taking various measures to protect Australians from these scams.

Over the last 12 to 14 months, Australian banks have taken significant steps to prevent cryptocurrency scams. It imposed restrictions or completely blocked transfers to cryptocurrency exchanges. These measures include major banks such as Commonwealth Bank, National Australia Bank, Westpac, Australia and New Zealand Banking Group, Bendigo Bank and most recently HSBC.

Australia’s competition and consumer regulator has reported that Australians will lose up to approximately $840 million due to investment scams in 2023. These losses once again reveal how big and widespread a problem approval phishing scams are.