Investment and Crypto Scams in Australia: How to Spot and Avoid Them
Investment scams are the ones that hurt the most, because the sums are large and the people behind them are patient and polished. They are not the clumsy texts full of spelling mistakes. They come with smart websites, friendly advisers, and account screens showing your money growing nicely.
Australians are a popular target, and the National Anti-Scam Centre has warned that fake investment websites are on the rise. This guide explains how these scams work and the simple checks that protect you. It is about staying safe, not about telling you where to put your money, which is a decision for you and a licensed adviser. For more ways to protect yourself online, see our complete guide to staying safe online.
Quick answer
If an investment promises high returns with little or no risk, it is a scam. Real investing never works that way. Be very wary of anything that comes from a social media advert, a cold call, or a new online friend. Before you part with a cent, check the company on ASIC’s Moneysmart website, and remember that a genuine opportunity will still be there after you have taken your time.
How these scams work
The pattern is remarkably consistent. You are offered an investment with returns that sound wonderful and risks that sound tiny. The website looks the part, the person you deal with is charming and never pushy in an obvious way, and you may even get a login to a dashboard that shows your balance climbing day by day.
That dashboard is the clever bit, because it is not real. The numbers are whatever the scammer types in. Things feel fine while you are putting money in. The trouble only shows up when you try to take money out, and suddenly there are fees to pay first, taxes to settle, or the site simply stops responding. By then the money is usually gone. Many people do not realise anything is wrong until that first withdrawal is blocked.
The forms it takes in Australia
Most of these scams reach people in one of a few ways. Social media adverts are common, often featuring a well-known Australian appearing to endorse a scheme. These videos can be faked convincingly now, so a familiar face is not proof of anything. Cold calls are another route, and here there is a useful rule to lean on: in Australia it is against the law to cold call someone to sell them a financial product. So an unexpected call about an investment is a red flag in itself. You can hang up with a clear conscience.
Crypto investments turn up a lot, partly because money sent in cryptocurrency is very hard to trace or claw back. And some scams play a longer game, starting as a friendly chat or even a budding romance online before the talk gently turns to a “great opportunity” the new friend wants to share. The warmth is real to you. To them it is just the setup.
The red flags
Treat it as a scam if you see
- High or guaranteed returns with little or no risk.
- An unexpected phone call offering an investment. This is illegal in Australia and a clear warning sign.
- A social media advert with a celebrity backing, which may well be faked.
- Pressure to act now, or to keep the opportunity to yourself.
- A request to invest in cryptocurrency, or to move money through an app you have not heard of.
- Trouble, delays or new fees the moment you try to withdraw your money.
How to check before you invest
A few minutes of checking is the best protection there is, and none of it requires any special knowledge.
Start with ASIC’s Moneysmart, the consumer site run by ASIC, the regulator for investments in Australia. Its investor alert list flags companies, websites and schemes known to be a problem, and it explains how to check whether a firm holds an Australian Financial Services licence, which legitimate investment businesses must have. If a company is not properly licensed, or it turns up on that alert list, that tells you a great deal. It is also worth doing a plain web search for the company’s name alongside the word scam, to see what other people have reported.
Then give yourself the simplest test of all: tell the person you would like to think it over for a few days and talk to your family or your own bank. A real investment will still be there. A scammer will suddenly find reasons you must act today. That urgency is the tell.
Talking it over with someone you trust is genuinely powerful here. Scammers work hard to keep you isolated, so a quiet word with an adult child, a friend, or your bank often breaks the spell. The same instinct that protects you from phone call scams pretending to be your bank or a government department works just as well here.
If you have already invested
If you think you have been caught, act quickly and be kind to yourself. These scams fool careful, intelligent people every day, and shame only helps the scammer keep you quiet. Contact your bank immediately on the number on your card, so they can try to stop or trace any payments and watch for more.
Then report it, which also helps warn others. Report the scam to Scamwatch at scamwatch.gov.au, and check and report through ASIC’s Moneysmart. If you have lost money to online fraud, report it to ReportCyber at cyber.gov.au as well, which passes the matter to police. Stop all contact with the scammer, and if they have any of your personal details, keep an eye on your accounts in the weeks that follow.
Before you finish
Download the free Family Tech Safety Checklist to help check phone safety, passwords, scam messages, emergency contacts and medical alarm details.
FAQ: investment and crypto scams
How can I tell a real investment from a scam?
The clearest sign is the promise. Real investing always carries risk, so anything offering high or guaranteed returns with no risk is a scam. Check the firm on ASIC’s Moneysmart before going any further.
Someone rang me with an investment offer. Is that allowed?
No. Cold calling to sell a financial product is illegal in Australia. An unexpected call about an investment is a red flag, so you can hang up.
The website shows my money growing. Doesn’t that prove it is real?
Sadly not. Those dashboards are controlled by the scammer and show whatever they choose. The real test is trying to withdraw, and that is usually where it falls apart.
A celebrity is backing it in the advert. Surely it is genuine?
Not necessarily. Scammers fake celebrity videos and photos to look trustworthy. Judge the offer on its own merits and the Moneysmart checks, never on a famous face.
Where do I check and report in Australia?
Check firms and warnings on ASIC’s Moneysmart, and report scams to Scamwatch at scamwatch.gov.au and, for online fraud, to ReportCyber at cyber.gov.au. If money has gone, ring your bank first.
