“We’ll pay you to beat scammers” – Aussie Crypto Exchange Launches World First Trial to Beat Fraudsters

By Aaron Feuerstein November 27, 2023 In Australia, Cryptocurrency, Swyftx
Source: Adobe Stock
  • Swyftx, an Australian crypto exchange, incentivises customers to enhance security and scam awareness through rewards.
  • 2,000 Australians will be rewarded initially for enhancing their account security and completing a course on crypto scams, amid efforts to combat rising fraud in the crypto industry.v

Swyftx Rewards Users for Scam Awareness

One of Australia’s largest crypto exchanges is paying customers to protect themselves against scams in a campaign to reduce fraud. Brisbane-based Swyftx will reward cryptocurrency users who activate two-factor authentication on their accounts and take a knowledge test on investment scams.

Scams involving crypto have become a major focus for banks and politicians over the last few years following a surge in attacks. Around $221 million in cryptocurrency was lost nationally to scammers in 2022, a 160% increase on the year before. An estimated 4.5m Australians currently own cryptocurrency.

Blockchain intelligence provider, TRM Labs, is partnering with Swyftx on the campaign.

Swyftx chief operating officer Jason Titman said the trial would test the impact of rewarding customers to research investment scams. He said results of the trial would be reported next year and shared with federal law enforcement and government.


Empowering Users – Everyone Has a Part to Play in Security

We’ll do whatever it takes to protect our customers and we are prepared to take the battle to scammers. Security is today the number one concern of global crypto users and the industry needs to understand that trust is integral to future adoption of blockchain technology.

Jason Titman

Swyftx and campaign partner TRM Labs are paying the reward to an initial 2,000 Australians who enable two-factor authentication on their Swyftx accounts and take a short course before passing a knowledge test.

The local crypto industry is under pressure to clamp down on scams involving digital assets, with national banks Commbank and Westpac stopping customer payments to platforms including Binance and Crypto.com in a recent crackdown on fraud.

Almost always the wave starts a long way from shore with scams that involve crypto. Most fraud begins on social media platforms before it makes its way through the banking system and then to exchanges. Exchanges are a last line of defence and everyone has a part to play in creating a more secure environment.

Jason Titman

Australian Assistant Treasurer, Stephen Jones, last month revealed more than 2,100 investment scam websites had been taken down by the ASIC, the country’s financial watchdog.

Investors Asked to Do Three Simple Things

The TRM and Swyftx course covers crypto-enabled investment scams and will be offered via the exchange’s Learn platform. Australians are also being encouraged to report suspected fraud that involves crypto to chainabuse.com, a free scam reporting website operated by TRM Labs.

TRM Chief Executive, Esteban Castaño, said:

Proactively spreading knowledge and awareness is key to combating scams. We are excited to support Swyftx’s innovative approach to enhancing crypto safety and security in Australia.

Esteban Castaño

Jonno Newman, an Australia-based investigator with TRM Labs and previously head of the Cybercrime Training and Prevention Section at South Australia Police, said:

The prevalent scams we see are the work of complex, business-like organised crime syndicates, complete with persuasive sales scripts and targets. Recognising their sophistication underscores the need to band together and work collaboratively to combat them.

Jonno Newman

Reported fraud levels among participants in the trial will be compared to a control group of Swyftx customers over the next six to eight months. The results of the trial will be shared with federal government and law enforcement in 2024.

We’re asking Aussie crypto users to do three simple things. Resist the urge to quickly send money to any crypto wallet that claims to be an investment opportunity. Do research on scams so you can spot the warning signs. And report suspected scams that involve crypto to Scamwatch and Chainabuse so we can bring more scammers to justice.

Jason Titman

Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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