Bye-bye bitcoin: Protecting assets as cryptocurrency scams surge
Cash is no longer king. In a highly competitive market, businesses are rapidly embracing multiple payment methods. According to The Future of Digital Payments for Businesses in Australia report authored by financial infrastructure platform for businesses Stripe and The University of Sydney Business School, 46% of businesses now accept four or more payment methods. The most common methods include bank transfer, corporate credit card, direct debit, and digital payments. Cryptocurrency is also increasingly being accepted by businesses across sectors. In fact, the report found emerging payment technologies and models such as cryptocurrencies or blockchain-based solutions are seen as promising areas of investment amongst 16% of businesses.
Cryptocurrency is a form of digital or virtual currency that uses cryptography for secure transactions (it is almost impossible to counterfeit or double-spend). Unlike other currencies, crypto (as it is referred to) is decentralised (it is not issued or regulated by any central authority), and operates using blockchain technology. Blockchain is a distributed ledger that records all transactions across a network of computers. “Each transaction is grouped into a block, and once a block is filled, it is added to the chain in a way that is secure and immutable. This means that once a transaction is recorded, it cannot be altered or deleted, ensuring transparency and security,” notes Britannica.
Cryptocurrency continues to grow in popularity.
According to Finder’s Cryptocurrency Adoption Index, Australia ranked ninth out of 26 countries for cryptocurrency adoption in 2022 – with 3.3 million people owning crypto. The crypto ownership rate in Australia was 17%, which was higher than the global average of 15%. By 2024, the number of Australians owning crypto had increased to 3.9 million – or 20% of the population – according to the Swyftx 4th Annual Australia Crypto Survey. The level of ownership is even higher according to other sources. A survey by Statista in 2025 found 32.5% of respondents owned some cryptocurrency, up from 27.5% the year before, and double the rate in 2019 (16.8%). The 2025 Independent Reserve Cryptocurrency Index found 30.8% of Australians currently own or have owned cryptocurrency. The top five most commonly held coins were Bitcoin (69.9%), Ethereum (29.8%), Dogecoin (17.3%), Ripple (15.1%) and Solana (12.7%).
In addition, the survey found 42.9% think cryptocurrencies are likely or very likely to become widely accepted by businesses in the future.
The 2023 Swyftx survey conducted by YouGov found 55% of Australians that own cryptocurrency had used digital assets to purchase goods and services – either at home or overseas.
Globally, stablecoin digital currency transaction volumes outpaced both Mastercard and PayPal in the last couple of years, notes digital currency payments platform RelayPay.
With more people embracing crypto, the number of crypto ATMs has surged and cryptocurrency exchanges (such as Coinbase, CoinSpot and Swyftx) are seeing revenue grow. Statista notes Australia is one of the leading countries worldwide for Bitcoin ATMs. And according to Ibis World, Australian cryptocurrency exchange revenue is expected to grow at an annualised 2.2% over the five years through 2024-25 to A$470.2 million.
Businesses are increasingly using cryptocurrencies.
According to a 2022 industry survey by RelayPay, roughly 12% of Australian businesses accepted cryptocurrency as a form of payment – up from about 6%. A small business poll conducted by Finder in mid-2023 found that around 15% of SMEs had either started accepting crypto payments or were planning to do so within the next 12 months. Based on these figures, between one in 10 and one in six Australian businesses use cryptocurrency in some capacity such as accepting it from customers, paying suppliers and staff, or holding it on their balance sheet.
The rise in businesses using cryptocurrencies has warranted a dedicated section on the Australian Taxation Office website – and a crypto-asset data matching program to keep track of the income of buyers and sellers.
Moneysmart.gov.au notes cryptocurrencies are not legal tender in Australia.
Crypto scams are also on the rise.
As the popularity of cryptocurrencies have grown amongst consumers and businesses, so too has it grown as a target for cybercriminals. It is the currency of choice for ransomware demands and also a target for scams.
A key risk associated with using cryptocurrencies relates to security. The potential for hacking and theft is high, as many cryptocurrencies are stored in digital wallets that can be vulnerable to cyberattacks.
Cryptocurrency is kept in unique digital wallets. Each wallet has private keys (unique codes) that authorise transactions on the blockchain network. One option is a virtual wallet kept online, known as a hot wallet. These wallets make crypto easier to access and makes it faster for users to trade because they can quickly connect to exchanges, notes Financial Times. But being online makes these wallets more susceptible to being hacked. According to data from Capterra, around 60% of owners use this type of wallet. An alternative is a cold wallet. This is where the crypto is kept “on an electronic device but in a vault not connected to the internet,” notes FT. “Cold storage wallets do not accept as many kinds of cryptocurrencies as online wallets, however, and they are more expensive storage options.” Around 34% use a cold wallet. There are also hardware wallets, which is type of cold wallet, such as Ledger or Trezor which are more user friendly than standard cold wallets. And there is the paper wallet, also a type of cold wallet, where the seed phrase is stored on a piece of paper.
According to statistics cited by CoinLaw, 2024 saw:
- 58,200 cryptocurrency fraud incidents worldwide – up from 47,000 cases in 2023
- total crypto crime revenue, including fraud, reach US$24.2 billion – up from US$20.6 billion in 2023
- a 23% increase in cryptocurrency being stolen globally through scams and fraud – reaching US$14.5 billion in losses
- the average loss per victim in cryptocurrency fraud cases rise to US$12,400 – up from US$9,800 in 2023
- 31% of cryptocurrency fraud cases involve phishing attacks targeting both individuals and organisations
- 1.2 million people globally scammed using Ponzi and pyramid schemes involving crypto investments
- US$1.1 billion stolen from centralised exchanges due to fraud and security breaches.
There are a myriad of crypto scams circulating. These include loader scams (direct requests for access to the cryptocurrency account to help with an investment, promising large returns once complete), fake app scams, phishing scams, investment opportunity, imposter cryptocurrency (cybercriminals pose as a trusted company or government agency to get you to complete a purchase or pay a fee using cryptocurrency), blackmail cryptocurrency (a fraudulent message informing you of stolen files that a cybercriminal will only return after you pay a ransom via cryptocurrency), romance, employment, giveaway, and social media scams.
Most crypto transactions are digital, but some ATMs allow owners to withdraw it as physical money. This has led to an increase in scams targeting crypto ATMs.
Since 2019, the number of crypto ATMs in Australia has increased from 23 to more than 1,800 in 2025. According to the Australian Transaction Reports and Analysis Centre (AUSTRAC), $275 million moves through crypto ATMs in Australia every year.
Crypto ATMs allow individuals to exchange cash for cryptocurrency and are often used by scammers pressuring or tricking their victims into sending them cryptocurrency, notes Cyber Daily.
ATM-based cryptocurrency scams cost Australians an estimated A$3,107,600 between 1 January 2024 and 1 January 2025. During that period, the Australian Cyber Security Centre’s ReportCyber website handled 150 crypto ATM scam reports – equating to one report every two and a half days.
In the wake of surging crypto ATM scams, in June 2025, AUSTRAC placed a $5,000 limit on cash deposits and withdrawals as part of new measures to safeguard consumers.
How to protect cryptocurrency assets
“Crypto systems allow users to stay relatively anonymous and there is no central data bank. So if a hacker steals your crypto, you have little hope of getting it back,” moneysmart.gov.au notes.
For this reason, it is important for owners to safeguard their crypto reserves (as they would cash).
Businesses (and individuals) holding cryptocurrencies may consider the following actions to help keep the asset secure:
- Use a hardware wallet – store private keys offline in a hardware or cold wallet which provide better security than hot wallets.
- Use complex passwords – create complex passwords and seed phrases. Your unique phrase is the only thing that can grant you access to your account and allows you to trade and purchase cryptocurrency online.
- Store passwords/seed phrases safely – avoid saving seed phrases in note-keeping apps or on cloud storage, instead keep it written on physical media in multiple secure locations.
- Keep keyphrases private – never share a seed phrase or password, either digitally or physically.
- Enable two-factor authentication (2FA) – activate 2FA on all accounts to add an extra layer of security.
- Use a private Wi-Fi network – scammers can intercept information sent over public Wi-Fi so use private Wi-Fi to connect to your crypto account or wallet.
- Use a VPN – install a virtual private network on your device in case you need to complete a crypto exchange or purchase on public Wi-Fi.
- Check software before installing – be careful when installing browser add-ons or software that links your crypto holdings.
- Employ best-practice cybersecurity – keep operating systems fully updated, use full disk encryption alongside anti-virus software, and use dedicated devices for all transactions.
- Transfer to external wallets – only keep cryptocurrency on exchanges if actively trading; otherwise, transfer it to a secure external wallet.
- Verify all wallet addresses – manually verify all wallet addresses at every stage of a transaction and take advantage of QR codes.
- Test transactions before sending large amounts of crypto – research from Coinbase shows 33% of crypto losses are the result of user error, such as typos in wallet addresses. Make small test transactions to check the details are correct and confirm receipt of funds before moving larger sums.
- Be aware of scams – familiarise yourself with common cryptocurrency scams and avoid sharing sensitive information. In particular, be on high alert to social media scams. AI-powered scams based on celebrities such as Elon Musk, known for his crypto investments, commonly appear on social media. Only engage with verified profiles, only use official pages and be wary of unsolicited offers.
- Exercise caution trading tokens – avoid interacting with a token you did not trade if it suddenly appears in your wallet.
- Beware of smart contract vulnerabilities – only interact with properly audited contracts and limit token approval permissions.
- Work with reputable services – use trusted cryptocurrency wallets, exchanges, and apps to minimise risks.
Cryptocurrency and insurance
Some crypto exchanges or custodial services arrange insurance on their hot wallets for clients. For purely on-chain positions, decentralised insurance protocols exist, but they come with smart contract and regulatory risks.
Commercial insurance policies are also entering the market.
Cryptocurrency insurance provides coverage against risks associated with digital assets, including theft, loss, and protocol failures.
Cover for cryptocurrency losses may be available in some coverage policy types including:
- Crime/Theft (loss of private keys or misappropriation by insiders)
- Cyber Liability and Business Interruption (exchange hacks, ransomware)
- Directors & Officers (D&O) and Errors & Omissions (E&O)
- Fidelity/Fraud (employee dishonesty), and
- Regulatory & Legal Defence Costs.
There are limited options for cover in Australia at this time, although there are policies available to crypto exchanges, blockchain developers, and financial institutions handling digital assets.
