Australian Securities and Investments Commission Warns of Fraudulent Cryptocurrency Trading Platforms Targeting Young Investors

According to FinanceFeeds, the Australian Securities and Investments Commission (ASIC) has issued a warning that scammers are defrauding retail investors via messaging apps such as WhatsApp and fake cryptocurrency trading platforms. Scammers typically begin by posting investment advice on social media to lure users into messaging groups disguised as reputable financial professionals or trading communities, then encourage them to deposit funds into fraudulent platforms. These platforms simulate profits using fabricated trading data; when users attempt to withdraw funds, they are charged additional “unlocking fees,” and all money flows directly into the scammers’ accounts. Moreover, scammers are targeting investors who have already suffered losses by promoting fake “funds recovery services” — a form of secondary fraud. According to MoneySmart survey data, 23% of Australians aged 18–28 hold crypto assets; 72% of Generation Z respondents have seen crypto-related advertisements on social media; and 41% have been directly solicited to invest in cryptocurrencies—indicating significantly elevated risk exposure among younger demographics. ASIC advises investors to avoid trusting investment advice from social media and recommends verifying a platform’s regulatory compliance through the AUSTRAC Register of Digital Currency Exchange Providers.