‘Impossible to stop’: Bitcoin scam doing the rounds using celebrities to ‘endorse’

When John saw an image of television personality David Koch promoting a bitcoin business in his Facebook feed, he didn’t pay much attention.

Then the 80-year-old pensioner on Queensland’s Sunshine Coast saw entrepreneur Dick Smith was also promoting the same business and he thought “this must be for real”.

John telephoned the business number, which had a Sydney area code, and agreed to have US$500 taken out of his Qantas cash card.

That was just the first transaction, but then he was encouraged to access his bank account and send more cash.

“He was giving me all these figures and I thought it was genuine and sent him the money,” John said.

Six weeks later — after investing more than $80,000 — John realised it was a scam when there were none of the promised returns.

“He kept promising me money but I never got any,” John said.

“Then I got in touch with the bank and they blocked my account.”

John went to the police station, but he said he was told they were too busy to help.

He’s been too embarrassed to pursue it further and keeps hoping, somehow, he can get his money back.

John is one of hundreds of people caught out in online scams that use the identities of high-profile personalities like Dick Smith, Mel Gibson, David Koch and Waleed Aly to make them appear authentic.

Trusted brands like the ABC have also had their logo included in advertising pages to help make the scam look more authentic.

16 people a day caught out in scams

Cybersecurity expert David Lacey said his charity IDCARE, which offers support for victims of cybercrime, was seeing around 16 people each day caught out in scams like John’s and the number was increasing.

“We have seen a 27 per cent increase over the past three months compared to this time last year,” Professor Lacey said.

“I am guessing low interest rates, possible hits in returns from super, and financial strains are motivating some to take risks more now than in the past.”

Dick Smith has been unable to stop the fraudsters using him as bait for their crime.

Mr Smith said he had been to state and federal police urging them to stop the fraudulent activity with no success.

“We’ve had letters going backwards and forwards,” Mr Smith said.

He was at a loss to understand why police told him it was “basically impossible to stop” as he thought it would be a case of following the money.

“I understand they don’t know where the emails are coming from, but if people are sending money surely you are able to trace the money,” he said.

Mr…