Scammers are increasingly using cryptocurrency — like Bitcoin and Ethereum — to trick people out of their money.
Because crypto can be transferred instantly and anonymously, once it’s gone, it’s almost impossible to get back.
If you’re thinking about investing in crypto, remember that it’s extremely risky and volatile. Prices can rise or crash overnight, and there are no guaranteed returns. Only invest what you can afford to lose.
Common Crypto Scam Red Flags
- Unexpected contact
Be cautious if someone you don’t know contacts you about a crypto opportunity — through a phone call, text, email or social media. They might claim to be an investment manager, financial advisor or even pose as someone you’ve met online. - Familiar recommendations
You might hear about a “great investment” from a friend, family member or online influencer (‘finfluencer’). Often, they’ve been scammed themselves. Watch out for fake celebrity endorsements or social media ads that sound too good to be true. - Pressure to act fast
Scammers often urge you to move money quickly, like transferring your crypto to their platform, downloading an unverified app, or paying “tax” before you can withdraw funds. Legitimate investments will never pressure you to act immediately. - Something feels off
Be alert if the offer promises “guaranteed” profits, “free money” or involves vague or poorly written documents. Also beware of unknown tokens appearing in your wallet — they can trigger scams if you try to sell them.
How Crypto Scams Work
Scammers use several tactics to steal money or information:
- Fake exchanges or wallets: These mimic real trading sites and capture your login details, allowing scammers to empty your account
- Giveaway scams: Fraudulent posts claim to “double” your crypto, often using fake celebrity endorsements
- Phishing scams: You’re sent fake links pretending to be from legitimate crypto services
- “Rug pulls” and Ponzi schemes: Scammers hype up a new crypto project, attract investors then disappear with the funds
- Fake job ads: You’re told to trade crypto or move money for clients — but you’re really helping scammers launder money.
How to Protect Yourself
Before investing in crypto:
- Question social media ads and celebrity endorsements
- Search online for the name of the token or platform plus words like “scam” or “review”
- Check that any crypto exchange is registered with AUSTRAC
- Avoid anyone asking for payment only in crypto
- Be wary of big promises of “high returns, low risk”
If you’re already investing:
- Use private Wi-Fi, not public hotspots
- Don’t interact with mystery tokens in your wallet
- Double-check any app or website that asks for your crypto wallet access.
If You’ve Been Scammed
ACT FAST. Contact your bank and report the scam to the Australian Government’s Scamwatch or ReportCyber (Australian Signals Directorate). Unfortunately, money lost through crypto transactions is very difficult to recover.
Related resources
- Stop and think to reduce the risk of crypto scams gov.au/financial-scams/crypto-scams (Moneysmart)
- Protect yourself from Crypto scams https://youtu.be/SqX48aT-6eo?si=okwCWMZ_fPIVDKjU (CBA)
