Cryptocurrencies: Who is vulnerable and what are the vulnerabilities?

Author:

Blue Levon1ORCID,Xing Congcong2,Pham Thu3

Affiliation:

1. The University of Queensland, Office of the Deputy‐Vice‐Chancellor (Indigenous Engagement) Brisbane Queensland Australia

2. School of Teacher Education and Leadership Queensland University of Technology Kelvin Grove Queensland Australia

3. Indigenous Research Unit, Griffith University Nathan Queensland Australia

Abstract

AbstractAustralians are embracing new forms of digital finance products and services, which includes purchasing cryptocurrencies and non‐fungible tokens (NFTs). There has been an increase in investment scams associated with cryptocurrencies. In this article, we sought to understand from cryptocurrency and NFT investors, who is vulnerable and what vulnerabilities exist. We surveyed 745 Australians aged 18 and over who have purchased cryptocurrencies or NFTs. We used sociological perspectives of consumer vulnerability that focus on internal and external factors to analyse our findings. We found that both socioeconomic advantaged and disadvantaged Australians are vulnerable. The vulnerabilities include concerns over security, unsolicited advice, limited options for learning, and insufficient financial and IT literacy. The findings suggest that online financial education is needed from trusted independent sources to help combat scams and to keep Australians and their crypto assets safe. We recommend that more opportunities to educate individuals about alternative forms of financial products are offered in compulsory, vocational and higher education settings.

Funder

Queensland University of Technology

Publisher

Wiley

Reference51 articles.

1. Australian Government. (2024)National Anti‐Scam Centre. Targeting scams. Report of the National Anti‐Scam Centre on Scam Activity 2023. Available from:https://www.accc.gov.au/system/files/targeting‐scams‐report‐activity‐2023.pdf

2. Australian Government. (n.d.)Australian Taxation Office. Crypto asset investments. Available from:https://www.ato.gov.au/individuals/investments‐and‐assets/crypto‐asset‐investments/

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