The Australian Securities and Investments Commission has issued a warning about scammers using messaging apps and fake crypto trading platforms to target retail investors. ASIC stated that scammers lure victims into WhatsApp and other messaging groups claiming to provide stock tips and crypto trading strategies, then direct users toward fraudulent platforms displaying fabricated profits and account balances. Deposited funds are not invested into real assets but go directly to scammers operating the platforms. The warning reflects global regulatory concern around rising fraud tied to digital asset speculation and social media investment communities.
How Scammers Exploit Social Trading Communities
ASIC explained that scammers typically begin by advertising investment opportunities or stock tips through social media platforms before inviting users into messaging groups impersonating well-known financial figures or trading communities. Victims are then encouraged to deposit money into fake crypto trading platforms that simulate live trading activity and profits using fabricated market data.
When victims attempt to withdraw funds, scammers demand additional fees under the pretense of unlocking investments or releasing profits. Those payments also go directly to fraudsters, while users remain unable to recover their original deposits. ASIC also warned that scammers increasingly target victims already exposed to pump-and-dump schemes by offering fraudulent "recovery services" claiming they can retrieve lost funds.
The scam structure combines social engineering, mobile messaging, fake trading interfaces, and cryptocurrency narratives into coordinated operations. Unlike older investment scams relying on cold calls or emails, many modern fraud campaigns now imitate online investing communities and influencer-driven trading culture.
Younger Investors Face Greater Exposure
ASIC referenced Moneysmart research showing widespread exposure among younger Australians to crypto-related advertising and social media investment promotion. According to the survey, 23% of Australians aged 18 to 28 reported owning crypto assets, while 29% said they engaged in short-term trading influenced by social media personalities.
The research also found that 72% of Gen Z respondents had seen crypto-related advertisements on social media, while 41% reported direct contact from someone encouraging crypto investment activity. These findings illustrate how digital asset investing increasingly overlaps with influencer culture, online trading communities, and social media engagement—environments that create fertile ground for coordinated fraud.
ASIC's Guidance for Investors
ASIC urged investors to avoid acting on financial advice received through social media or messaging groups and recommended checking whether businesses appear on AUSTRAC's Virtual Asset Service Provider Register. The regulator also advised users to verify whether companies or individuals are licensed or authorized to offer investment products through ASIC's public databases and investor alerts.
ASIC reminded investors that businesses providing virtual asset services in Australia must register with AUSTRAC and comply with anti-money laundering and counter-terrorism financing obligations.
