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ASIC Sounds Alarm as Crypto Scammers Trap Investors Through Fake Trading Groups
- ASIC has warned Australians about fake crypto trading platforms being promoted through WhatsApp groups and online investment communities.
- Scammers are impersonating traders and investment experts while using fake dashboards and fabricated profits to convince victims to deposit funds.
- Regulators say fraudsters are increasingly using AI-generated content and social engineering tactics to make investment scams appear legitimate.
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.
Related: AI Agents Are Starting to Spend Money Online — And Big Tech Wants the Rails
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.
Related: Ethereum Pushes Clear Signing to Combat Costly Crypto Scams
Author
Rachel Lourdesamy
Rachel is a freelance writer based in Sydney with experience within financial services, marketing, and corporate communications in the APAC region. An avid reader and a graduate of the University of Sydney, she covers topics including business, finance and human interest.
