Articles & Blogs

Australians lost more than $701 million to investment scams last year – a 135% jump from 2020. Much of the increase is due to a ballooning in scams involving cryptocurrency.

In a bid to stem the losses, money watchdog ASIC, has put together the top 10 warning signs of a likely crypto scam:

1. Offers that come out of the blue
2. Fake celebrity endorsements
3. A romantic partner you only know online asks for money in crypto
4. You’re pressured into transferring crypto from your current exchange to another website
5. You’re asked to pay for a financial service with crypto
6. The app you’re using for crypto isn’t listed on the Google Play Store or Apple Store
7. You need to pay more to access your money
8. You’re promised guaranteed returns
9. Strange tokens appear in your digital wallet
10. The provider withholds investment earnings ‘for tax purposes’

If you think you’ve been caught up in a crypto scam, ASIC Deputy Chair Sarah Court, says it’s important to act fast. “Draw a line under it. Don’t send any more money. Block all contact from the scammer,” she advises.

“Contact your bank or financial institution immediately to report the scam. Ask them to stop any transactions. Also, warn your family and friends so they can watch out for potential follow-up scams.”