ASIC Warns Investors Over Fake Crypto Trading Platforms Spread Through Messaging Apps

Australia’s corporate watchdog, ASIC, has issued a fresh warning about scammers using messaging apps and fake crypto trading platforms to target retail investors, particularly younger Australians.

According to ASIC, fraudsters are luring victims into WhatsApp and similar chat groups that claim to offer stock tips, share trading advice, or exclusive investment opportunities. Scammers often impersonate well-known traders or financial figures to build credibility before directing victims to fraudulent crypto-asset trading platforms.

ASIC said the fake platforms display fabricated trades and profits to convince users that their investments are growing. In reality, no legitimate trading takes place, and deposited funds are transferred directly to scammers.

Victims attempting to withdraw funds are then asked to pay additional “release” or “withdrawal” fees, which are also stolen.

The regulator noted that the scam model is increasingly being used alongside illegal “pump-and-dump” schemes coordinated through social media and messaging groups.

ASIC also highlighted growing exposure among younger investors. Research cited by the regulator found that 23% of Australians aged 18 to 28 own crypto assets, while 29% said they engage in short-term trading influenced by social media personalities.

The watchdog urged investors to verify crypto service providers through AUSTRAC’s Virtual Asset Service Provider Register before investing.

ASIC advised consumers to avoid acting on unsolicited investment advice from messaging apps or social media, and to immediately contact their bank if they suspect they have transferred funds to a scam platform.

The regulator also warned victims to remain cautious of “recovery scams,” where fraudsters falsely promise to retrieve previously lost investment funds for an upfront payment.