subscribe to our newsletter sign up

Be alert: Scammers targeting SMSFs with bitcoin

Scam, beware of scammers, SMSFs with bitcoin

Cyber criminals are using phishing scams on fake bitcoin exchange websites and SMSF trustees are a tasty target, an audit firm has warned.

ASF Audits executive general manager of technical services Shelley Banton said while the high-risk and volatile nature of crypto assets has seen many SMSF professionals discouraging clients from purchasing bitcoin (BTC), it hasn’t stopped SMSF trustees investing in them.

“Irrational returns on BTC will result in SMSF trustees taking further positions and investing in additional crypto assets for fear of missing out,” said Ms Banton.

 The hype around cryptocurrency, she warned, has seen a number of phishing schemes emerge in the past couple of years, with the Australian Competition and Consumer Commission (ACCC) receiving 245 reports of bitcoin-related scams in October 2016 with losses totalling $92,000.

While there are many safeguards protecting BTC wallets against hackers and scammers, such as two-factor authentication and encryption, a lot of the scams, she said, involve fake website that mimic legitimate websites and steal a user’s account details when they try to log in.

“Even the most alert and tech-savvy SMSF trustee can be taken in by scammers who can manipulate Google Search results and direct traffic to a fake, cloned BTC exchange website,” she said.

Ms Banton said there have also been examples where other types of cryptocurrency have collapsed due to cyber security incidents.

The most notable one she cited was with The DAO, another type of cryptocurrency which at one point raised over $34 million in 2016 through a crowdfunding campaign.

“When hackers found and exploited a vulnerability in the technology, they siphoned off one-third of The DAO’s funds, resulting in traders dumping The DAO by the truckload,” she said.

“There’s no doubt that the frequency and impact of cyber security incidents will continue to increase and adversely affect crypto assets.”

Be alert: Scammers targeting SMSFs with bitcoin
nestegg logo
Promoted Content
Recommended by Spike Native Network
Philip - Perth - Anonymous, below is the one who doesn't know how this works. Company tax is NOT tax on shareholders - it's tax on the activity of the company AND.......
DJ - The ease of importing already skilled labour has also distorted the training & employment of locals as its now easier for business to import rather.......
Wildcat - The reason we are such a low taxing country is less than 50% of the population pays any net tax at all. More than 50% of the tax revenue is paid by.......
Dr Terry Dwyer, Dwye... - This is misleading since one has to add workers compensation, compulsory third party and super guarantee as quasi-taxes to compare with European.......