The CEO of Independent Reserve, Adrian Przelozny, has disclosed that cryptocurrency users who are 65 years old and above have a good chance of being scammed because crypto fraudsters believe that “they are less familiar with the internet and technology”.
He stated that the Australian-based crypto exchange is relying on its data, which revealed that “people over 65 who are involved in crypto have a good chance of being scammed.”
As a measure to minimize this set of users’ exposure to crypto-related scam, he said his crypto exchange will flag any transaction they see being carried out by 65-year-olds as potential fraud. For such transactions to go through, customer support would put a call through to the wallet owner enlightening them about the risk involved.
Przelozny, who spoke Cointelegraph in an interview, was quoted as saying, “If we see an 80-year-old making a crypto withdrawal, they are going to get a call,” saying the exchange has a team that spends all day calling potential scam victims to ask them question about suspicious transactions.
He said that this particular group of crypto users need an extra layer of security checks and attention so that they don’t fall victim.
Meanwhile, the United States’ Federal Trade Commission (FTC) reveals that a 2021 research shows that Gen Xers, Millennials, and Gen Z young adults (ages 18-59) were over four times more likely than older adults (60 and above) to report a loss on bogus cryptocurrency investment opportunities and investment-related scams.
In another report, the Canadian Anti-Fraud Centre (2022) says individuals aged 20-49 report more cases of fraud. In the United Kingdom, the Lloyds Bank report is saying similar things.
But Przelozny says Independent Reserve data say the older generation is more prone to crypto scams, making the customer support desk of the company ask questions such as, “I noticed you’re making a withdrawal, can you tell me more about it? Did you get asked to open an account on Independent Reserve by another person?”
Przelozny, who is also a director at Blockchain Australia stated that even though the crypto exchange put the safety of its users as a priority, some of the senior citizens prefer to follow their minds rather than the professional advice that is designed to protect them from losing their hard-earned money to scammers.
According to him, it is hard to convince some users that they are being scammed or about to be scammed. Some of them “can get really defensive” before they realize they are getting scammed.
He said the compliance team won’t wait for the customer to realize it, “we won’t allow them to make a crypto withdrawal.”
Another set of crypto users that could get scammed, according to him, is the lower-income earners, who might think that jumping on questionable offers is an opportunity for them to make easy money.
In 2023 alone, a study led by The University of Queensland says in 2023, Australians lost at least $171 million to cryptocurrency investment scams while Dr Levon Blue forecasted that the figure might grow as “more people embrace new forms of digital finance products and services.”