Crypto scams cost Australian investors over A$300 million in 2025 according to Scamwatch. Fraudsters are becoming more sophisticated — using fake celebrity endorsements, professional-looking websites, and even AI-generated content to appear legitimate. This guide walks you through the 10 most reliable warning signs our investigative team has identified across hundreds of scam reports.
No legitimate investment can guarantee returns. If a platform promises fixed daily profits, "100% safe" returns, or claims you will never lose money — it is a scam. Regulated brokers are legally required by the ASIC to display risk warnings because all trading carries the possibility of loss.
Any firm offering financial services to Australian investors must be authorised by the Australian Securities and Investments Commission. Before depositing a single dollar, search the firm's name on the ASIC Professional Registers at connectonline.asic.gov.au. If they are not listed — or if they claim to be "ASIC compliant" rather than "ASIC-licensed" — walk away immediately.
Scammers routinely use fabricated quotes from figures like Elon Musk, Martin Lewis, or Dragons' Den investors to build false credibility. These are always fake. No legitimate trading platform needs celebrity endorsements to attract customers, and real celebrities never promote unregulated investment schemes.
Urgency is a manipulation tactic. Phrases like "this offer expires in 24 hours", "limited spots available", or "your account manager needs a decision today" are designed to stop you from doing due diligence. A legitimate platform will never pressure you to deposit before you are ready.
If you were contacted out of nowhere — via Instagram DM, WhatsApp, a cold call, or even a romantic connection online — and then directed toward a trading platform, treat it as a red flag. This is a common entry point for both investment scams and romance fraud schemes involving crypto.
One of the clearest signs of a scam is when you try to withdraw funds and are told you must pay taxes, fees, or "insurance deposits" first. Legitimate platforms never require additional payments to release your own money. Once a scam platform starts blocking withdrawals, the money is almost always gone.
Check who actually owns the platform. Look for a registered company address, company number, and named directors. Search the company on ASIC Connect (connectonline.asic.gov.au). Scam platforms frequently list fake addresses, use PO boxes, or register in obscure offshore jurisdictions with no investor protections.
Modern scam platforms invest heavily in their website design to appear legitimate. Look beyond the surface — check if they have a verifiable trading history, independent user reviews on Trustpilot, and real contact details that actually work. A glossy website proves nothing.
If anyone connected to a trading platform asks to install software on your computer or phone — such as AnyDesk or TeamViewer — to "help you set up your account" or "fix a problem" — disconnect immediately. This is a common tactic used to steal funds directly from your bank accounts.
ASIC-licensed firms are legally required to display clear risk warnings on all marketing material. If a platform's website contains no mention of risk, no ASIC number, and no disclaimer that your capital is at risk — it is operating outside Australia financial regulations.
If you recognise any of these warning signs, take the following steps immediately:
The sooner you act, the better your chances of recovering funds.
Risk Warning: Trading and investing carries significant risk. Your investments can fall as well as rise. CFDs carry high risk of rapid loss due to leverage. Cryptocurrency is not ASIC-regulated and not covered by AFCA. This is information only, not financial advice. Seek independent advice before investing.
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