The Australian financial market watchdog has warned against growing fraud involving fake crypto trading platforms, which scammers are promoting in messaging app groups and forums.
Targeting Young Investors
Targeting crypto investors also appears to be highly statistical: MoneySmart research found that 23 per cent of Aussies aged 18 to 28 own crypto assets, of whom two-thirds (66 per cent) have a short-term or speculative approach to managing their crypto investments. Moreover, 29 per cent of the 1,127 surveyed individuals conduct short-term trading based on social media influencers.
Warned today (Monday), the scam tactics are well-known and have been used globally for years to lure victims. However, the Australian Securities and Investments Commission (ASIC) warning shows that Aussies are still falling victim to such scams.
The regulator explained that scammers initially target victims through social media ads and posts offering trading tips. These fraudsters then invite victims to messaging groups, baiting them with stock tips from impersonated “well-known figures”.
These scammers then make investment recommendations through fake crypto trading platforms. The regulator explained that these platform screens may show profits and trades, but all the data is fake.
Victims are also pressured to pay “unlock fees” if they submit withdrawal requests, deepening their losses further. Meanwhile, all the victims’ funds go straight to scammers’ accounts rather than into any investment platform.
Do Not Click on Ads
The MoneySmart survey also found that 72 per cent of Gen Z Aussies see social media ads about crypto, and 41 per cent of them have even been contacted by someone about investing in crypto.
The targets of such scams are often victims of pump-and-dump schemes who are approached by scammers offering services to recover their money. In reality, however, they lose even more money.
Such “recovery scams” are also widespread worldwide, and ASIC counterparts have issued multiple warnings against them.
The Aussie watchdog even took down nearly 12,000 investment scam and phishing websites by 2025.