Australia issues warning on fake crypto trading platforms

The Australian Securities and Investments Commission (ASIC) has issued an investor warning about a rise in investment scams that use messaging apps and fake cryptocurrency trading platforms, FinanceFeeds reported. ASIC explained that scammers approach potential victims in group chats on apps like WhatsApp, offering investment advice on stocks and crypto. They then lure users to fraudulent trading platforms that display fabricated profits and account balances. When victims attempt to withdraw funds, the scammers demand additional fees, causing further losses. The commission also highlighted an increase in secondary scams, where fraudsters offer “fund recovery services” to investors who have already been victims of pump-and-dump schemes. ASIC advised investors to be cautious of investment offers made via social media and messaging apps and to verify whether the involved company is registered as a Virtual Asset Service Provider (VASP) with AUSTRAC.