ACCC warns of Crypto Scam Surge, Outlines 2025-26 Enforcement Priorities
Australian Competition and Consumer Commission (ACCC) chair Gina Cass-Gottlieb has voiced serious concerns about a potential increase in investment scams targeting Australian consumers, fueled by US President Donald Trump’s pledge to ease cryptocurrency regulations. During his election campaign, Trump promised to make the United States the “crypto capital of the planet,” a move that boosted bitcoin prices to as high as $US108,000 earlier this year. This contrasts sharply with the stricter approach taken by former President Joe Biden’s management, which sued numerous crypto companies, including Binance and Coinbase, for alleged fraud and money laundering—allegations both companies deny.
Cass-Gottlieb expressed her apprehension to ABC News, stating, “Any weakening of such regulation is of concern for us,”
and characterizing more relaxed crypto regulations as one of her “horror scenarios.”
She elaborated, “This is an environment — because of the sophistication of global crime, and also because potentially of regulatory ‘freeing up’ — that we certainly have an enhanced concern.”
This concern is underscored by the ACCC’s 2023 figures, revealing Australian consumers lost over $1.3 billion to investment scams, a significant portion of which involved cryptocurrency either as a payment method or a central element of fraudulent schemes promising rapid riches. As a result, combating scams is a top priority for the ACCC in the 2025-26 financial year.
Increased Scrutiny Across Multiple sectors
Beyond cryptocurrency, Cass-Gottlieb announced increased ACCC scrutiny of various sectors contributing to Australia’s cost of living crisis. The ACCC received $30 million in additional funding from the Albanese government to expand investigations into unequal bargaining power, targeting supermarkets and retailers. Other areas of focus include essential services (energy and telecommunications), cartels, and excessive surcharges and poorly disclosed fees, with online booking agent Webjet cited as an example. Cass-Gottlieb noted, “Late last year, we took action against Webjet … [for] failure to properly disclose, we allege, the full price, because of the way they represented the minimum price, which actually did not include, we allege, fees that they always charged so that it was not a proper disclosure.”
She will detail these enforcement priorities in a speech to the Committee for Economic Development of Australia (CEDA) on Thursday.
Aviation industry under the Microscope
The ACCC’s investigation into the aviation sector is particularly noteworthy. Cass-Gottlieb will argue in her CEDA speech, “when markets are not workably competitive, Australian customers – whether consumers or businesses – pay the price.”
She highlighted the impact of the 2024 collapse of Bonza Airlines and Rex Airlines’ withdrawal from metropolitan routes,resulting in a duopoly dominated by Qantas and Virgin,controlling over 90 percent of the market. The ACCC observed that “When Rex first offered intercity routes, the ACCC observed a decrease in average airfares,”
but “Conversely, in the months following the withdrawal of Rex’s major city services last year, average airfares increased.”
A Treasury report further supports this, indicating that “the presence of a single additional airline on a route leads to airfares that are 5 to 10 per cent lower,”
with even greater reductions when more competitors enter the market. The ACCC’s past success against Qantas, securing a $100 million civil penalty for the “ghost flights” scandal, demonstrates its commitment to holding airlines accountable.
Supermarkets and Greenwashing Scrutiny
The ACCC’s November public inquiries into supermarkets, involving Woolworths, Coles, Aldi, and Metcash (IGA), revealed a highly concentrated market with Coles and Woolworths controlling 67 percent of national sales, rising to 83 percent when Aldi and Metcash are included. Cass-Gottlieb’s prepared remarks stated, “We heard of consumers challenged by grocery affordability who were buying less food, skipping meals, and experiencing emotional distress when grocery shopping.”
The final report is expected later this year.The ACCC will also intensify its focus on “greenwashing,” with Clorox, the manufacturer of GLAD-branded bags, specifically named for allegedly misleading claims about ocean plastic content. The lawsuit against Clorox is pending in the Federal Court.
New Merger Laws and “Serial Acquirers”
Cass-Gottlieb expressed enthusiasm for Australia’s new merger laws, effective January 2026, requiring companies to notify the ACCC of mergers and acquisitions above a certain threshold to ensure they won’t substantially lessen competition. Failure to notify coudl render transactions void. This addresses past issues where companies, such as Petstock and Qantas, acquired businesses without notifying the ACCC. Cass-Gottlieb stated, “we consider it is one of the most vital reforms to help us protect the competition that we have currently in the concentrated markets,”
adding that it will be “a big transition for parties who are serial acquirers … they’ll be engaging with us much more frequently enough and much more transparently.”
Unveiling the Crypto Scam surge: Insights from an Industry Expert
A Rising Tide of Crypto Scams: what Led to the ACCC’s Warnings?
Sophia Reed, Senior Editor at World-Today-News.com: In light of recent warnings from the Australian Competition and Consumer Commission (ACCC) about a potential surge in cryptocurrency-related scams, we’re faced with a pivotal question: How serious is this emerging threat, and what prompted the ACCC to declare such a distinct focus for the foreseeable future?
Jordan Harris, Expert in Financial Regulation and Digital Security: This is indeed a critical concern. The ACCC’s warning comes against a backdrop of shifting global regulatory frameworks,especially notable under varying US regulations influenced by political leadership. The contrast between current relaxed stances versus the aggressive enforcement under past administrations such as Biden’s showcases the potential risk entanglements. Historic patterns indicate that regulatory relaxation often emboldens fraudulent operators, spiraling into scams that exploit investors’ desires for rapid gains in burgeoning markets like crypto.
Can US Regulatory Changes Impact Global Crypto Scam Trends?
Sophia Reed: With US President Donald Trump proposing moves to make the nation a “crypto capital of the planet,” what kind of global ripples might we observe in terms of increased scams targeting consumers in areas like Australia?
Jordan Harris: The interconnectedness of global financial systems means that changes in a major player like the US often reverberate globally. Easier US regulations may catalyze fraudulent schemes worldwide, as scammers recognize increased influxes of cryptocurrency assets in less regulated environments. As evidenced historically, like during the dot-com bubble, financial innovations lacking robust oversight can led to a proliferation of deceptive practices, which the ACCC’s recent focus on combating investment scams is geared to counteract.
regulatory Reforms and Market Dynamics: A Double-Edged Sword
Sophia Reed: Gina Cass-Gottlieb, the ACCC Chair, highlighted that regulatory “freeing up” is a part of her “horror scenarios.” Could you unpack how this relates to broader market concerns, beyond just cryptocurrencies?
Jordan Harris: Regulatory changes invariably create a landscape where new opportunities—and risks—arise. Cass-Gottlieb’s cautious approach underscores an essential principle in economics: Market efficiency thrives on transparency and accountability. When regulations are relaxed inexpensively, especially in areas like aviation, where a market collapse left consumers vulnerable to monopolistic exploitation, the ripple effect is significant. Historical precedence shows us this pattern—every bureaucracy weakened lays the groundwork for anti-competitive practices and inflated consumer costs.The ACCC’s vigilant reforms in Australian markets, as recent comments suggest, aim to safeguard against such economic dystopias.
Looking Forward: Enhanced Regulation and Consumer Protection
Sophia Reed: With new merger laws slated to protect market competition, how significant is this shift for serial acquirers and the broader market environment?
Jordan Harris: These reforms mark an essential recalibration of Australia’s competitive landscape. By mandating transparency for mergers and acquisitions that could hamper competition, the ACCC ensures that predatory market behaviors are kept in check. This ensures smaller entities can compete, safeguarding consumer interests with more substantial protections and leading to an overall more dynamic and competitive market landscape. Moreover, as observed historically, when markets are structured with robust regulatory frameworks, both innovation and consumer welfare flourish.
Final thoughts: Navigating Regulatory Uncertainty and Embracing Market Transparency
Sophia Reed: As global economies grapple with digital currencies and shifting financial landscapes, what key takeaways should policymakers and consumers keep in mind?
Jordan Harris: Stakeholders at all levels should prioritize vigilance and advocacy for strong regulatory frameworks that compel transparency and ethical conduct. For consumers, awareness and education become paramount tools in navigating markets plagued by scams and irregularities. Policymakers, conversely, must balance innovation with oversight to maintain market stability. Ultimately, informed decision-making grounded in historical context, akin to lessons from the early 2000s tech bubble, is critical for both current and future economic health.
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