In a concerning development for online safety, Australian Foreign Minister Penny Wong has become the latest high-profile target of cryptocurrency investment scams spreading on social media platforms. The brazen fraudsters have exploited fake images of Wong to lure unsuspecting investors, just as tough new anti-scam laws are set to take effect.
Doctored Photos and False Claims in Fake Crypto Ads
The scam ads, which have appeared on platforms like X (formerly Twitter) in recent weeks, feature poorly edited pictures of Wong bruised and in handcuffs, along with bogus claims that she was jailed for promoting a crypto investment “opportunity” during a TV interview. One ad falsely attributes the fabricated story of Wong’s “arrest” to news.com.au.
This disturbing tactic follows a familiar playbook seen in previous crypto scams that have fraudulently used the likenesses of Australian celebrities such as Guy Sebastian and Sophie Monk. The ads often link to articles on websites masquerading as legitimate news outlets to give the scams an air of credibility.
Government Cracks Down with Hefty Fines for Platforms
The Australian government has been reporting these malicious ads as they appear. A spokesperson for Wong highlighted recent legislation passed as part of the government’s scams prevention framework, aiming to make Australia “the toughest target in the world for scammers.”
Under the new rules, social media companies, telcos, and banks will be required to take reasonable steps to prevent, detect, and disrupt scams on their platforms or face massive fines of up to $50 million. The regulations also expect social media firms to verify advertisers, putting more pressure on them to proactively combat fraudulent crypto ads.
Scourge of Investment Scams on Social Media
The surge of crypto investment scams on social media has become a major concern. According to the National Anti-Scam Centre, nearly 1,900 reports of investment-related scams originating from social media were logged in Australia in 2024 alone, with staggering reported losses of $45.5 million.
“While there has been progress in establishing pathways to refer scams to major social media platforms for disruption, the National Anti-Scam Centre and key partners expect social media platforms to take greater responsibility for proactive monitoring, removal of scams and targeted in-platform warnings to users.”
– Spokesperson for the National Anti-Scam Centre
Efforts to determine how much the Australian government itself is spending on advertising on X since Elon Musk’s takeover have been blocked, with the Treasury and Finance departments claiming that disclosing the ad spend would compromise their negotiating power for ad rates. The lack of transparency has raised questions about the government’s dealings with the platform under Musk’s leadership.
Will Stricter Regulations Stem the Tide of Crypto Fraud?
As the new anti-scam measures come into force, all eyes will be on the social media giants to see if they can effectively curb the proliferation of fraudulent crypto ads exploiting public figures like Penny Wong. With the threat of substantial penalties looming, platforms will be under intense scrutiny to demonstrate that they are taking robust action against scammers.
However, given the persistent and adaptable nature of these scams, it remains to be seen whether the tougher regulations will be sufficient to stem the rising tide of crypto fraud on social media. As scammers continue to evolve their tactics, staying vigilant and informed is crucial for anyone navigating the often murky waters of cryptocurrency investments online.
The blatant exploitation of Minister Wong’s image is a stark reminder of the audacity of crypto scammers and the challenges authorities face in combating their nefarious activities. As the battle against online fraud intensifies, cooperation between government, industry, and the public will be essential to protect investors and maintain trust in legitimate crypto projects in the ever-evolving digital landscape.
