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Australia’s ASIC Exposes Crypto Scams Flooding Social Media Feeds

Key Highlights

  • ASIC warns of rising crypto scams on social media and WhatsApp, targeting mainly young retail investors.
  • Scammers use fake trading platforms, fake profits, and “release fees” to steal money with no real trading happening.
  • Most victims are drawn in through ads and group chats, and losses are usually permanent once funds are sent.

Australia’s financial regulator, ASIC, issued a warning on Monday about an increase in cryptocurrency scams happening on social media and messaging apps like WhatsApp.

The latest reports show scams are mainly targeting everyday investors, particularly young people. These scams involve fake cryptocurrency investments promoted through online ads, chat groups, and websites that look like legitimate trading platforms.

How scammers trap their victims

ASIC’s report reveals scammers are infiltrating online investment groups – particularly those focused on share trading and stock tips – to promote fraudulent cryptocurrency platforms. These platforms appear legitimate, displaying convincing but entirely fake charts, profits, and trading activity. In reality, no actual trading takes place.

Scammers often lure people in with tempting ads on social media promising simple ways to make money trading. Once someone clicks on the ad, they’re added to messaging groups where the scammers pose as experienced or successful traders.

From there, they are directed to fake investment websites controlled by the scammers. “Any money deposited into these platforms goes straight to the scammers,” ASIC cautioned, adding that when the victims later try to withdraw funds, they are asked to pay extra “release fees” that are also stolen. In most cases, once the scammers feel they have taken enough, they cut off contact completely or block the victim.

Young investors under pressure

ASIC also highlighted how widespread exposure to crypto content has become among young people. The regulator, citing research from Moneysmart, based on a survey of 1,127 Australians aged 18 to 28, found that 72% of Gen Z respondents had seen crypto ads on social media.

Around 41% said they had been directly contacted about investing in crypto. 

Nearly a quarter of people (23%) currently own cryptocurrencies, but a lot of them don’t have a clear long-term strategy for trading. Almost a third (29%) admit to using advice from social media influencers to help them decide what to buy or sell.

Authorities advise caution before investing

As a crypto investor, I’m always careful where I send my money. ASIC is now advising everyone to do their homework *before* investing – basically, double-check any platform you’re using. They specifically recommend using the AUSTRAC register to make sure the company is officially registered and allowed to deal with digital assets. It’s a good reminder to stay safe out there!

Before using any online platform, the regulator recommends checking for warnings and reports of scams. If you encounter anything suspicious, stop communicating with the group right away, don’t send money, and immediately notify your bank.

ASIC advises reporting scams to Scamwatch to help authorities monitor them and protect others. If you’ve been emotionally affected by a scam and lost money, support is available from services like Lifeline and Beyond Blue.

The regulator’s key advice is to take your time, carefully verify any investment, and avoid relying on tips from social media or chat groups. Once you send your money, recovering it can be extremely difficult.

This scam falls into a category known as “Pig-Butchering.” It’s become a significant problem in the cryptocurrency world, as scammers lure victims with the false promise of high investment returns.

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2026-05-25 23:19