In the already difficult to navigate world of online trading, young people are being lured in by the promise of easy money trading cryptocurrency.
The problem – the sites, trades, and profits are all entirely fake and any money paid goes straight into the pockets of scammers.
The scams work by inviting young people to join trading advice chat groups on messaging services such as WhatsApp, sometimes posing as high-profile figures who the scammers impersonate.
Scammers then recommend victims invest via a fake crypto asset trading platform which shows profits and trades, when in reality no real trading is taking place.
When the victim tries to withdraw their supposed profits, scammers ask for even more money via “withdrawal fees”.
Once money has been transferred via the scam there is often no way to get it back.
“If it sounds too good to be true, it probably is,” financial watchdog boss, Alan Kirkland said.
While anyone can be targeted, younger Australians are particularly exposed because of the volume of investment ads they see online, said Mr Kirkland who is head of the Australian Securities and Investments Commission.
“‘These scams often involve polished, fake trading platforms that show false profits to convince people to invest,” Mr Kirkland said.
“They even impersonate trusted brands and well-known individuals to make fake investment opportunities look real.”
Advertisements for cryptocurrency platforms are widespread on social media, with one Gen Z survey showing 72 per cent of respondents had seen ads and 41 per cent had been contacted by someone about investing in crypto.
ASIC is warning young people to be extremely careful when investing in crypto, especially when being invited to join groups via social media.
Young people are being told to “Stop, Check and Protect” by taking the time to research via ASIC’s Moneysmart website whether a platform is registered as required or doing an online search of the business.
For those who think they’ve been scammed, ASIC advises contacting their bank immediately.
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