ASIC Warns of Crypto Scams Targeting Investors via Messaging Apps

The Australian Securities and Investments Commission (ASIC) has issued a warning about scammers using messaging apps like WhatsApp and fake cryptocurrency trading platforms to defraud retail investors. According to Foresight News, these scammers often post investment advice on social media to lure users into joining groups disguised as reputable financial figures or trading communities. Once users are in these groups, they are persuaded to deposit money into fraudulent platforms that simulate profits through fake trading data. When users attempt to withdraw their funds, they are asked to pay additional 'unlocking fees,' with all money going directly to the scammers. Additionally, scammers are targeting investors who have already suffered losses by offering fake 'fund recovery services' as a secondary scam. Moneysmart's survey data reveals that 23% of Australians aged 18 to 28 hold crypto assets, with 72% of Generation Z having seen crypto ads on social media and 41% having been directly encouraged to invest in cryptocurrencies. This demographic shows a significantly higher risk exposure. ASIC advises investors to be cautious of investment advice on social media and recommends verifying platform compliance through the AUSTRAC virtual asset service provider registry.