ASIC Sounds Alarm as Crypto Scammers Trap Investors Through Fake Trading Groups

Australia’s corporate regulator has issued a fresh warning over sophisticated cryptocurrency scams operating through messaging apps and online investment groups. Fraudsters are using fake crypto trading platforms to target investors through WhatsApp, Telegram and social media communities posing as trading groups.

According to ASIC, scammers commonly impersonate successful traders, financial experts or well-known investment figures to build credibility before directing victims to fraudulent crypto platforms. These websites often display fabricated trades, customer support features and fake profit dashboards designed to appear legitimate despite no real trading taking place.

ASIC said money deposited into these platforms is transferred directly to scammers rather than invested into genuine assets. Victims attempting to withdraw funds are then asked to pay additional charges, including withdrawal fees, verification costs or tax payments, before scammers eventually disappear.

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Scam Networks Increasingly Rely on AI Tactics 

Authorities warned scammers are increasingly using artificial intelligence, cloned branding, fake testimonials and other sophisticated tools to make scams harder to identify. Some operations also allow users to withdraw small amounts initially to create trust and encourage larger deposits later.

Recent Moneysmart research cited by ASIC found 72% of surveyed Gen Z Australians had seen crypto advertisements on social media, while 41% said they had been approached about crypto investments. The research also found 23% owned crypto assets, with many taking a speculative or short-term trading approach.

ASIC reminded Australians that crypto businesses operating virtual asset services must be registered with AUSTRAC and comply with anti-money laundering obligations.

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