Australian Cybercrime Portal Exploited to Drain Crypto Wallets
Australia’s national cybercrime reporting platform is being abused by scammers to hijack crypto wallets and steal funds. Fraudsters submit fake reports through the portal—posing as victims or law enforcement—to trigger forced password and two-factor authentication resets on exchanges and custodial services. The Australian Federal Police (AFP) and the Australian Cyber Security Centre warn that these tactics have led to millions in digital asset losses over recent months. Authorities urge traders to verify any account-recovery requests directly with service providers, enable hardware wallets, and adopt strict security measures. The incident highlights vulnerabilities in centralized reporting systems and underscores the growing sophistication of crypto scams in Australia.
Bearish
This news is bearish for the crypto market because it underscores rising security risks and regulatory vulnerabilities. When high-profile platforms are exploited, traders may lose confidence, prompting short-term sell-offs and increased demand for fiat. In the long term, repeated wallet-draining schemes can slow institutional adoption and drive funds into perceived ‘safe’ assets. Similar past breaches—such as major exchange hacks—triggered sharp price dips and heightened calls for decentralised custody solutions.