Australia’s top financial sector watchdog has warned of an increase in investment scams involving fraudulent digital asset trading platforms promoted through messaging apps and social media, noting that young people are particularly at risk.
According to the latest ‘scam alert’ released by the Australian Securities and Investments Commission (ASIC), scammers are targeting victims through social media and using messaging apps to further convince them to invest in fraudulent digital asset schemes.
These scams typically follow a similar pattern, beginning with adverts presented on social media platforms offering trading tips on shares. Victims who engage are then invited to messaging apps claiming to share recommendations from well-known figures, who the scammers impersonate, and are subsequently persuaded to invest via a fake digital asset trading platform that the scammers have set up. However, the invested money goes straight into the scammer’s bank account rather than into any real investment. As a result, when the victim tries to withdraw their assets—for which the scammers also charge a fee—they are unable to do so.
“ASIC is warning consumers who have joined ‘share trading’ or ‘stock tips’ messaging app groups that scammers are using these forums to push investments on fake crypto-asset trading platforms,” said the regulator. “These fake platforms show profits and trades, but in fact, there is no real trading, and the site contains fake data. Any money deposited into these platforms goes straight to the scammers.”
ASIC said the scammers are also using the same tactic to target victims of pump-and-dump schemes, using money recovery scams to prey on people hoping to get their money back.
The regulator warned last December about a rise in scammers using messaging apps such as WhatsApp to conduct widespread, coordinated pump-and-dump schemes targeting retail investors.
In its latest warning, ASIC suggested that, while anyone can be targeted by these scams, younger, more social media active people are particularly at risk.
ASIC cited recent research from Moneysmart—a Southeast Asian personal finance portal—that found younger people who use social media more are more likely to have increased exposure to crypto trading advertisements.
A survey of 1,127 Australians aged between 18 and 28 found that 23% own some form of digital asset. Of these, two-thirds (66%) use a short-term/speculative approach to managing their crypto investments, and 29% trade short-term based on social media influencers.
The same research also found that 72% of Gen Z respondents said they had seen social media ads about digital assets, and 41% said they had been contacted by someone about investing in crypto.
Mitigation measures
Beyond warnings, the regulator suggested some steps potential investors can take to reduce risks or prevent falling victim to such scams.
First, it advised against giving personal information or acting on investment advice found on social media, including in messaging app groups.
Second, investors should ask themselves whether they really know what they are investing in, and, if not, check the Australian Transaction Reports and Analysis Centre’s (AUSTRAC) register of virtual asset service providers to see whether the potential investment entity or platform is legitimate and registered.
Finally, the regulator advised that potential investors “act quickly if something feels wrong.” This includes contacting their bank and the authorities immediately if they believe they have shared personal or financial information or transferred money to a scam.
ASIC’s increased focus on crypto
Monday’s scam alert is just the latest attempt from Australia’s finance watchdog to highlight the risks associated with digital asset investments, given the lack of substantial, bespoke regulation governing the space in the country, up until recently.
In January, ASIC published a report outlining its concerns about the uncertainty around some digital asset products in the country.
“ASIC is tracking major shifts across Australia’s financial system as pressures on consumers, markets and businesses intensify,” said the regulator. “Rapid innovation by or for people unfamiliar with financial services — particularly in digital assets and fintechs — continues to create risks, including with unlicensed advice, misleading conduct, and the exploitation of unclear regulatory boundaries.”
It also warned that some entities will actively seek to remain outside regulation, further contributing to perceived regulatory uncertainty, and as a result, “ensuring clarity on licensing requirements and maintaining effective perimeter oversight will remain priorities for ASIC in 2026.”
Fortunately, a digital asset framework bill that addresses many of the regulator’s concerns was passed by the Australian Parliament in April.
The so-called “Corporations Amendment (Digital Assets Framework) Bill 2025” brings, amongst other measures, a mandate that digital asset platforms and custodians hold an Australian Financial Services License (AFSL), putting them on the same footing as regulated financial services firms.
The bill received Royal Assent on April 8, giving digital asset firms 12 months to obtain a license and become compliant with the new law before it comes into force.
In the meantime, ASIC continues to advise investors to remain vigilant against evolving digital asset scams and frauds.
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