TechFlow News, May 26: According to FinanceFeeds, the Australian Securities and Investments Commission (ASIC) has issued a warning alerting retail investors to scams conducted via messaging apps such as WhatsApp and fake cryptocurrency trading platforms. Scammers typically begin by posting investment advice on social media to lure users into messaging groups disguised as reputable financial professionals or trading communities, then entice them to deposit funds into fraudulent platforms. These platforms simulate profits using fabricated trading data; when users attempt to withdraw funds, they are asked to pay additional “unlocking fees,” with all funds flowing directly into scammers’ accounts.
Moreover, scammers are conducting secondary fraud by offering fake “fund recovery services” to investors who have already suffered losses. According to MoneySmart survey data, 23% of Australians aged 18–28 hold crypto assets; 72% of Generation Z respondents have seen cryptocurrency advertisements on social media; and 41% have been directly solicited to invest in cryptocurrencies—indicating significantly elevated risk exposure among younger demographics. ASIC advises investors to avoid trusting investment advice from social media and recommends verifying a platform’s regulatory compliance through the AUSTRAC Register of Digital Currency Exchange Providers.
