The Australian Securities and Investments Commission (ASIC) and National Anti-Scam Centre have issued a scam alert warning of fake crypto trading platforms being advertised in message groups focused on stock tips and share trading.
The platforms appear legitimate, complete with trading and profit data, but are in fact entirely fake, with no real trading activity.
“Any money deposited into these platforms goes to the scammers,” ASIC and ScamWatch said in a 25 May alert.
“The platforms then ask for fees to release assets. These fees also go straight to the scammers, and no assets are released.”
The scammers target victims via ads and posts on social media offering trading tips, after which they invite investors into messaging groups where scammers impersonate expert traders or well-known individuals.
According to ScamWatch, even experienced investors can fall victim to such scams.
“You may be at greater risk if you’ve joined investment or stock tips groups, follow self-proclaimed trading ‘gurus’ online, or are looking for quick returns,” ScamWatch said.
Two examples of such scams are illustrated above.
What you can do
According to ScamWatch and ASIC, here are the warning signs to look out for:
- Invites to “stock tips” or “investment advice” groups on WhatsApp, Telegram, or other messaging apps.
- Any virtual asset service provider (crypto trading platform) that isn’t listed on AUSTRAC’s publicly searchable register.
- Pressure to act quickly or deposit funds to “secure” returns.
- Guaranteed profits or unusually consistent or high returns.
- Requests for extra fees to withdraw your money.
The advice to avoid such scams remains the same – never give out your personal information or act on advice provided via social media; check AUSTRAC to confirm the entity you are trading with is legitimate; and act quickly if you are scammed – report it immediately to ScamWatch and the police.
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David Hollingworth
David Hollingworth has been writing about technology for over 20 years, and has worked for a range of print and online titles in his career. He is enjoying getting to grips with cyber security, especially when it lets him talk about Lego.