Crypto scams

The cryptocurrency craze has always felt like the Wild West. Now, with its growing popularity, scammers are eager to exploit it. They might pose as investment managers or brokers, promising sky-high returns, but ultimately leave you with nothing.

Here are common crypto scams to watch out for:

 

Fake recommendations
from compromised social media accounts or unsolicited messages with links to fake crypto sites or apps.

 

Fake crypto platforms
that appear legitimate but actually divert your funds to scammers.

 

Initial coin offerings (ICOs)
offering discounted coins to investors which are left worthless once scammers cash out.

 

Fake job offers
involving setting up bank and crypto accounts to assist in money laundering, putting you at risk of prosecution.

 

Scammers posing as recovery services
promising to recover lost funds for a fee but failing to deliver results.

crypto-scams

If you suspect a crypto scam:

  • Seek professional financial advice especially if you’re new to crypto.
  • Research platforms, tokens or coins online and look for scam warnings.
  • Be wary of unsolicited messages promoting crypto investments.
  • Check websites for legitimacy, watch for spelling mistakes and avoid sites that promise instant rewards.
  • Beware of high returns with low-risk guarantees.
  • Check with AUSTRAC for registered digital currency exchanges.
  • Visit moneysmart.gov.au for more on crypto scams and what to do if you’ve been scammed.