ASIC Alerts on Rising Crypto Scams Targeting Young Australian Investors

The Australian regulator warns that fake crypto trading platforms continue to trap investors, especially young Australians engaging in short-term trading influenced by social media.

Editorial Team · May 25, 2026 · 2 min read · Source: financemagnates.com

The Australian Securities and Investments Commission (ASIC) has issued a strong warning about a surge in fraudulent crypto trading platforms targeting investors through social media and messaging apps. These scams prey primarily on younger Australians, who remain vulnerable to well-known tactics that have been used worldwide for years.

Research by MoneySmart reveals that nearly one in four Australians aged 18 to 28 hold cryptocurrency assets. Among them, close to two-thirds adopt a speculative or short-term trading approach. A significant portion also relies on investment advice from social media influencers, with nearly 30 percent admitting their trading decisions are influenced by online personalities. This demographic's active engagement in crypto trading amplifies their exposure to scams.

ASIC explains that scammers begin by placing enticing ads or posts on social media, offering trading tips to lure victims. They then invite these individuals into private messaging groups, where they impersonate well-known figures and provide fake investment guidance through fraudulent crypto platforms. While these platforms simulate profits and trades, the data presented is entirely fabricated. Victims who attempt to withdraw funds are pressured into paying “unlock fees,” causing further financial damage as the funds actually flow directly to the scammers.

Warnings emphasize that clicking on crypto-related ads or responding to unsolicited investment offers on social media increases the risk of falling victim. A MoneySmart survey shows that 72 percent of Gen Z Australians have encountered crypto ads on social media, while 41 percent have been contacted directly by someone promoting crypto investments. These contacts often lead to involvement in pump-and-dump schemes or so-called “recovery scams,” where victims are falsely promised help retrieving lost funds but end up losing more.

ASIC has actively worked to combat these frauds by shutting down nearly 12,000 scam and phishing websites by 2025. The regulator continues to advise investors to exercise caution, avoid responding to unsolicited offers, and verify the legitimacy of any trading platform before engaging.