Cryptocurrency scams are a growing threat for Australians. A recent ACCC report found that Australians lost more than $2 billion to scams last year, with the majority of that loss coming from cryptocurrency investments.

Scammers use all sorts of tactics to lure investors in, including social media marketing and celebrity endorsements. In some cases they also claim to sell phantom cryptocurrencies to novices.
Investing in cryptocurrencies

Investing in cryptocurrencies is a popular alternative to traditional investments. However, it is important to know the risks and make informed decisions before you invest your money.

Cryptocurrencies are digital assets that are stored on a decentralised network of computers called a blockchain. Unlike conventional central bank-issued currencies, cryptocurrencies do not rely on governments to issue them and they do not have to be backed by gold. Rather, they are built on smart contracts that are designed to facilitate financial transactions.

There are a number of different ways to invest in cryptocurrencies in Australia. The most common way is through an exchange or broker that allows you to purchase cryptocurrency. These platforms allow you to buy fractional shares of a particular currency, which can be useful for investors who want to start small and build up their portfolio over time.

To invest in a cryptocurrency, you need to deposit funds into an account with an exchange or broker. You can do this by linking your bank account or by making a payment using a debit or credit card (watch out for high charges from the card provider).

Once you have funds in your crypto account, you can purchase a single coin or multiple coins at once. You can also set up recurring transactions that automatically purchase coins over a certain period of time.

Depending on the exchange or broker you use, there are different types of cryptocurrencies that you can choose from. The most popular are Bitcoin, Ethereum and Ripple.

You can also choose to invest in a cryptocurrency fund. These fund managers typically take a long-term view and focus on providing a good return on your investment.

Australian regulators are increasingly focusing on consumer protection in relation to crypto assets and ICOs. This is reflected in ASIC’s 2022-2026 corporate plan, which includes a key focus on market integrity and the regulation of crypto assets.

Listed investment companies (LICs) that provide retail investors with a material exposure to crypto-assets should follow the same good practices for custody, risk management and disclosure as a registered managed investment scheme.
Scams involving cryptocurrencies

Cryptocurrencies are a growing part of the world’s financial system, but scammers are using them to steal money. In Australia, scams involving cryptocurrencies were the second most common last year, according to Australian Competition and Consumer Commission (ACCC) figures.

These scams target people who are interested in investing in cryptocurrencies but are unaware of the risks. They may be approached by scammers through phone calls, social media or email and be told they can make huge amounts of money. The victims will be asked to pay an upfront fee or disclose personal information, such as their bank account details or wallet address.

Scammers can also lure their victims with offers on social media and through ads on websites such as Google. These adverts often feature celebrities or businesspeople, with promises of free cash or giveaways.

The ACCC has urged people to be careful when using social media to promote cryptocurrency opportunities and to conduct their own research before making any investments. It also advised against ignoring cold calls from people who claim to be from a financial institution or government agency, as these are usually scams.

Those who have been a victim of cryptocurrency scams should contact the police and report the incident. They should also warn their family and friends to watch out for similar scams.

Another way to avoid being scammed is to never give your private key information over public Wi-Fi networks. This can help stop hackers from stealing your crypto wallet keys and personal information, which can be difficult to replace.

Phishing scams are a common type of online fraud that involves sending a fraudulent email message to users with a link that looks like it is from a legitimate digital currency exchange or wallet provider. This link takes the user to a fake website that can steal sensitive information, such as passwords or crypto wallet keys.

It is also important to keep in mind that not all digital currency exchanges are registered with AUSTRAC. Those that are registered should have a registration number on the site that shows how it is regulated.
Scams involving digital currency exchanges

Cryptocurrency scams are a common form of online fraud that involve stealing digital assets from unsuspecting investors. These scams are often carried out by criminals who have learned how to use the cryptocurrency market to steal from investors.

Scammers target victims through a variety of methods, including social engineering and fraudulent investment opportunities. They may also pose as a government agency, well-known business or tech support service to convince people to reveal their private keys and send them cryptocurrency.

A common social engineering tactic is to email users and claim that they have visited adult websites or other illicit pages that they should remove from their profiles. The emails then threaten to expose the user unless they reveal their private keys or send money to the scammer’s wallet.

Another way that scammers can extort funds from victims is through an advance fee scam. They contact victims who have previously lost their money and ask for an upfront fee to recoup their losses. This is usually disguised as tax or miscellaneous legal costs.

If you have lost money through a cryptocurrency scam, you should report it to law enforcement authorities immediately. This will help protect you from future scams and ensure your rights are protected.

The Federal Trade Commission (FTC) reports that the number of crypto-related scams increased in 2021. This trend is largely due to the popularity of cryptocurrencies and their volatility.

These types of scams can take various forms, such as fake celebrity endorsements or ads that link to professional-looking websites to lure potential investors. The ads may also include a "giveaway" that promises to match or multiply the money transferred by the victim.

Scammers often create fraudulent investment opportunities that claim to be a new project or nonfungible token (NFT) coin. These coins and tokens are unique digital assets that are unable to be exchanged for other coins or currencies, leaving their investors with an investment worthless.

In the Squid scam, for example, scammers promised that investors could earn a large amount of cryptocurrency by playing online games. The price of the Squid tokens jumped from 1 cent to $90, but trading stopped and the value disappeared.
Scams involving digital currency wallets

Cryptocurrency wallets are a great way to safely store your coins and tokens. However, it’s important to choose the right one for you. Some popular options include Ledger, Trezor and Exodus Wallet, all of which are trusted by millions of users around the world. The best ones offer top of the range security and are available in both hardware and software varieties.

Some of the more innovative wallets come in the form of apps, allowing users to access their funds from anywhere with an internet connection. These are usually free, but some do charge for added features. Luckily, the best wallets are well worth the extra cash.

There are also a few nifty tricks to protecting your digital currency, including using a secure password. The best way to protect your assets is to always keep them safe and sound, ideally on a secure, private network that’s only accessible to you. How can i get back my Bitcoin from scammers


It’s also a good idea to avoid the most common cryptocurrency scams by avoiding suspicious offers and requests, keeping your eyes peeled for any email or text that may have you on the hook for some crypto you don’t actually own, and only using reputable online exchanges. The most notable one is the infamous BitKRX, which was exposed by the Bitcoin community and South Korean authorities in December 2017. It’s also a good idea to be wary of unsolicited phone calls and SMS messages, especially from people you’ve never met or who claim to have a high position in the government.