Warning to public: Cryptocurrency investment scam

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WA ScamNet has issued a warning for community members regarding a prolific crypto investment scam method.

In this investment scam, you are lured into purchasing cryptocurrency (crypto). Once the crypto is in the scammer’s wallet, your money is gone for good.

In 2022, 147 WA victims lost $7.15 million to investment scams.

How it works
Emails and social media advertisements use attractive marketing tricks such as false celebrity endorsement to lure you to fake trading websites. At these sites, you’re encouraged to sign up. Within minutes of signing up, a supposed ‘financial advisor’ will contact you and uses high-pressure selling techniques to hook you in. The investment is offered as low risk with a guaranteed high return and typically you start off with a small deposit.

The caller will provide step-by-step instructions to assist with the trading and creating an online crypto wallet. This is where the scammers catch you – they will send you to buy real crypto to make the deal seem genuine.  They will then ask you to transfer the crypto in a trading account.  However, the account a fake and once you have transferred the crypto it can not be refunded.

Your account may seem to have lots of money in it. However when you attempt to access funds or withdraw the winnings, the problems start:

  • Accounts are ‘frozen’ and you need to pay unlock fees.

  • You need to pay taxes before accessing the funds but after paying, the trades fail and profits decrease.

Tips to protect yourself:

  • Be wary of any investment offering a “high return with little to no risk” – if it sounds too good to be true, it probably is.

  • If you have invested and are trying to withdraw your funds, do not pay anything further or provide your personal information in order to make the withdrawal, i.e. make sure you do not pay funds to get funds.

  • Do not allow remote access to your devices as this allows scammers to access your bank accounts and crypto wallets.

  • Get independent financial advice before committing to any investments. Only use financial advisers with an Australian Financial Services (AFS) licence, or those who are authorised by an AFS licensee.

  • Check the MoneySmart website for more information on investing and information about bitcoin and virtual currencies.

For further information:
More information is available on the WA ScamNet website. Enquiries can be made by calling 1300 30 40 54.