Scammers like crypto for the same reasons some people like it: it moves fast, crosses borders easily and transfers are very hard to reverse. Australia's National Anti-Scam Centre runs Scamwatch, which regularly warns about crypto investment scams, including a May 2026 alert about fake crypto platforms promoted through "stock tips" chat groups. The good news is that crypto scams follow recognisable patterns.
Common crypto scams
Fake trading platforms
A professional-looking website or app shows your "investment" growing quickly. You may be encouraged to deposit more. When you try to withdraw, you are told to pay fees, taxes or "unlocking" charges, and the money never comes back. The platform was never real.
Stock-tip and investment groups
Scammers create WhatsApp, Telegram or social media groups promising expert tips. Other "members", often fake accounts, post screenshots of profits. Victims are directed to fake platforms.
Romance and friendship scams
Someone builds a relationship over weeks or months, then shares an "opportunity" in crypto. These long-con scams can lead to devastating losses.
Impersonation
Scammers pretend to be from a bank, a government agency, police, an exchange's support team or a well-known company, claiming your account is compromised and that you must move funds to a "safe" wallet.
Celebrity and fake news endorsements
Fake articles and deepfake videos show public figures endorsing a crypto scheme. Genuine celebrities are not secretly promoting get-rich-quick crypto platforms.
Crypto ATM instructions
Victims are told to withdraw cash and deposit it into a crypto ATM, sending crypto to an address the scammer provides. Legitimate organisations do not do this.
Job scams
"Task" jobs that pay small amounts at first, then require you to deposit crypto to unlock bigger earnings.
Recovery scams
After a loss, victims are contacted by people claiming they can recover the money for a fee. This is often the same scammers, or others who buy victim lists.
Fake tokens and rug pulls
Promoters hype a new token, then disappear with investors' money or dump their holdings.
Red flags
- Guaranteed or unusually high returns.
- Pressure to act quickly or keep it secret.
- Contact that came out of the blue, especially via social media or messaging apps.
- Requests to install remote-access software.
- Requests for your seed phrase or private key.
- Being asked to pay fees or tax before you can withdraw.
- A platform you cannot find on AUSTRAC's register or that appears on ASIC's investor alert list.
Use the scam red-flag checker to run through a situation step by step.
What to do if you have been scammed
- Stop all payments and contact.
- Contact your bank or the platform you used immediately.
- Report to Scamwatch and to ReportCyber.
- Secure your accounts: change passwords and enable two-factor authentication.
- Contact IDCARE if your identity documents or personal details were shared.
- Beware of recovery offers.
- Look after yourself: scams can be distressing; Lifeline is available on 13 11 14.
Quick self-check
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How scammers build trust
Scammers rarely ask for a large amount at first. They often allow a small "test" withdrawal to succeed, show fake dashboards with steadily rising balances, use fake testimonials and celebrity images, and create a sense of urgency, such as a "limited window" or an account that will be "frozen". They may coach victims on what to tell their bank if it asks questions about a transfer. If someone tells you to lie to your bank, that alone is a clear sign of a scam.
Helping a friend or family member
If you think someone you know is caught up in a crypto scam, approach them without judgement; shame keeps many victims silent. Encourage them to stop sending money, to talk to their bank, and to report to Scamwatch. Show them how to look up the platform on AUSTRAC's register and ASIC's investor alert list. IDCARE can provide free, confidential support.
The bottom line
If an opportunity promises easy crypto profits, arrives unexpectedly or asks for secrecy or urgency, assume it is a scam until proven otherwise. Talking to someone you trust before you send money is one of the most effective protections there is.
Frequently asked questions
Can I get my money back from a crypto scam?
It is often difficult, but act fast. Contact your bank or the platform you paid through immediately, report to Scamwatch and ReportCyber, and contact IDCARE for support.
Are crypto recovery services legitimate?
Be very cautious. Scammers often contact victims offering to recover lost crypto for an upfront fee. This is a common follow-up scam.
How do fake trading platforms work?
They show fake profits on a professional-looking website or app to encourage larger deposits, then block withdrawals or demand fees or taxes before you can withdraw.
Would a government agency ask me to pay in crypto?
No. Australian government agencies, police and the ATO will not ask you to pay with crypto or to deposit cash into a crypto ATM.
Who do I report a crypto scam to?
Report to Scamwatch, and to ReportCyber through the Australian Cyber Security Centre if you lost money online. Tell your bank and the platform you used.
What is a pig-butchering scam?
It is a long-con scam in which a scammer builds trust, often romantically or as a friend, over weeks or months, then steers the victim into a fake crypto investment.
Sources and further reading
Facts on this page were checked against these primary and official sources. Conditions change — confirm before you travel or buy.
- Cryptocurrencies — ASIC Moneysmart
- Investor alert list — ASIC Moneysmart
- Scamwatch — National Anti-Scam Centre
- IDCARE — IDCARE
