The Australian Securities and Investments Commission (ASIC) on Monday warned consumers that scammers are using ‘share trading’ and ‘stock tips’ messaging app groups to push investments on fake crypto-asset trading platforms.
ASIC said the platforms display profits and trades on-screen, but the activity is entirely fabricated.
“These fake platforms show profits and trades, but in fact, there is no real trading, and the site contains fake data,” ASIC said. “Any money deposited into these platforms goes straight to the scammers.”
How the scam works
The regulator described the scam as a multi-stage funnel. Scammers first target victims through social media advertisements and posts claiming to offer trading tips on shares. Victims are then invited into messaging apps where supposed recommendations from well-known figures, who the scammers impersonate, are shared.
Scammers then recommend investing via a fake crypto-asset trading platform they have set up. The platform’s interface mimics a real trading venue, showing fabricated P&L data. When the victim tries to withdraw, scammers demand fees, claiming the payment is necessary to unlock the investment. The deposited funds go into the scammer’s bank account.
ASIC said scammers are also using this approach to target victims of pump-and-dump schemes through money recovery scams.
Broader enforcement context
ASIC had previously warned about scammers using messaging apps such as WhatsApp for coordinated pump-and-dump schemes targeting retail investors.
The regulator’s takedown program has removed more than 14,000 investment scam and phishing websites since it launched two years ago, according to a 2025 ASIC enforcement update. That program covers fake investment trading platforms, cryptocurrency investment scams, and investment scam ads promoted on social media.
ASIC advised consumers to check the AUSTRAC VASPR to confirm whether an entity is a registered virtual asset service provider, and to contact their bank immediately if they have transferred money to a suspected scam.
