Australia’s financial regulator ASIC issued an urgent warning Monday about crypto scam operations proliferating through messaging apps and social media, with young investors particularly vulnerable. The schemes target Australia’s Gen Z demographic, where 23 percent already own crypto and two-thirds pursue speculative short-term strategies, according to MoneySmart research. Nearly three in ten young traders make decisions based on social media influencers.
The scams follow a familiar pattern: fraudsters use social media ads to lure victims into messaging groups with fake stock tips from impersonated market figures, then funnel them toward fraudulent crypto trading platforms. These platforms display fake profits and trades while funneling victims’ deposits directly to scammer accounts. Authorities warn that withdrawal requests trigger demands for “unlock fees,” deepening losses. Recovery scams targeting previous victims are also surging. ASIC has already shuttered nearly 12,000 fraudulent investment sites through 2025.
FXnCO Insight
Crypto traders should immediately verify any platform through official regulatory databases before depositing funds and avoid investment opportunities originating from social media contacts or messaging groups.
Source: Finance Magnates