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.
The Australian Securities and Investments Commission (ASIC) warned on Monday about a rise in crypto scams spreading through social media and messaging apps, especially WhatsApp.
According to the official release, the scams primarily target retail investors, especially young people, tricking them into fake crypto investments using online ads, group chats, and fake trading websites.
How scammers trap their victims
In the report, ASIC said scammers are joining “share trading” and “stock tips” group chats and slowly convincing members to invest in fake crypto platforms. These platforms look real on the surface. They show fake charts, fake profits, and fake trading activity, but there is no real trading happening behind the screen.
Victims are first attracted through social media ads offering easy trading tips or quick gains. After clicking, they are moved into messaging groups where scammers act like experts or pretend to be 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.
About 23% already own crypto assets, and many of them trade without long-term planning. Around 29% said they rely on advice from social media influencers when making trading decisions.
Authorities advise caution before investing
To fight this, ASIC urged people to always check investment platforms before sending money. It recommends using the AUSTRAC Virtual Asset Service Provider Register to confirm if a business is officially registered and allowed to operate.
The regulator advised people to check warning lists and scam reports before trusting any platform. If something feels wrong, people are told to stop talking to the group immediately, avoid sending money, and contact their bank as soon as possible.
ASIC also encouraged reporting scams to Scamwatch so authorities can track and warn others. Support services such as Lifeline and Beyond Blue are also available for people affected emotionally after losing money in scams.
The main message from the regulator is simple: be slow, check everything, and don’t trust investment advice from social media or group chats, because once the money is sent, it is very hard to get it back.
Meanwhile, this particular type of scam can be categorized under Pig-Butchering. Over the years, this type of scam has been a headache in the crypto space as it targets victims with promises of giving them a higher return.
Also Read: Bithumb Sounds Alarm as AI Phishing Crypto Scams Sweep South Korea
