Cryptocurrency Investment Scams in Australia
Australians lost $122 million to cryptocurrency scams in 2024, with 47% of all investment scams involving crypto. Learn how to spot fake platforms and crypto ATM scams before you lose money.
Australians reported losing $382 million to investment scams in the 2023-24 financial year, with 47% involving cryptocurrency. That's approximately $122 million stolen through crypto-related fraud. These scams claim victims across the socioeconomic spectrum, targeting both tech-savvy investors and those new to digital currency. The sophistication of these operations means anyone can fall victim regardless of education or experience level.
From January 2024 to January 2025, ReportCyber received 150 reports of cryptocurrency ATM scams with $3.1 million in losses.
That's one report every 2.5 days with an average loss exceeding $20,000. These numbers represent only reported cases. Many victims never report because of embarrassment or the belief that nothing can be done.
Cryptocurrency ATM Scams: The Most Dangerous Trend
Cryptocurrency ATM scams have emerged as one of the most devastating fraud types targeting Australians. Scammers direct victims to deposit cash into cryptocurrency ATMs (Bitcoin ATMs) under various pretenses. This scam specifically targets people who may not be familiar with cryptocurrency but are told by scammers that it's the only way to make a payment.
The scenarios vary but follow predictable patterns:
Fake government debt scams
Victims are told to pay ATO tax debt via Bitcoin ATM to avoid immediate arrest. This is always a scam.
Fake fines
Scammers demand payment of traffic fines or court fees through cryptocurrency ATMs.
Romance scams
An online love interest claims they need emergency money sent via crypto ATM. Real people don't ask for money through cryptocurrency ATMs.
Tech support scams
Scammers claim the only way to fix a computer virus is by paying through Bitcoin ATM.
Investment onboarding
A first deposit for a fake investment opportunity that must be made through cryptocurrency ATMs.
Here's the critical fact you need to remember:
No legitimate government agency accepts payment via cryptocurrency ATM. Not the ATO. Not Services Australia. Not any court system. Not law enforcement. If someone claiming to be from government tells you to use a Bitcoin ATM, it is always, without exception, a scam. Hang up immediately.
Fake Cryptocurrency Investment Platforms
ASIC reported taking down over 5,000 fake investment websites in 2024, with 600 linked specifically to cryptocurrency scams.
These platforms look remarkably legitimate, showing fake trading activity, rising portfolio values, and impressive returns that seem real. Victims deposit actual money into what they believe are legitimate exchanges, watch their investments apparently grow, then discover they can never withdraw their funds.
Many of these scams involve what's known as "pig butchering" tactics. Scammers build romantic or friendly relationships over weeks or months before casually introducing an investment opportunity. The relationship feels real. The person seems genuinely interested in helping you achieve financial success. The gradual introduction of crypto investing seems natural rather than pushy. By the time you realise it's a scam, you've invested significant money and emotional energy. Learn more in our pig butchering scams guide.
Common Cryptocurrency Scam Types
Ponzi and Pyramid Schemes
Fraudulent cryptocurrency investment clubs or platforms promise high returns paid from new investors' money rather than actual trading profits. These schemes rely on continuous recruitment. Early investors receive returns that come from later investors' deposits, creating the illusion of a profitable operation. When recruitment slows and new money stops flowing in, the scheme collapses and most investors lose everything. The operators disappear with whatever funds remain, often millions of dollars.
Fake ICOs and Token Sales
Scammers create elaborate Initial Coin Offerings (ICOs) or new token sales for cryptocurrencies that don't exist or have no real value. They produce professional-looking whitepapers filled with technical jargon and ambitious roadmaps. They build polished websites with countdown timers creating artificial urgency. They fabricate team profiles using stolen photos and credentials. The entire operation looks legitimate until you try to sell your tokens or realise the project never launched any actual product or service.
Impersonation Scams
Criminals impersonate legitimate cryptocurrency exchanges like Coinbase or Binance, often using domains that are one letter different from the real site. They impersonate cryptocurrency wallet providers with fake apps that steal your credentials and empty your wallets. They create fake social media accounts impersonating famous investors or crypto influencers offering exclusive investment opportunities. They even impersonate government agencies claiming crypto payment is required for supposed debts or fines.
Deepfake videos and fake social media accounts have made impersonation scams particularly dangerous. One elderly Australian woman lost her life savings after seeing a deepfake video on social media showing Elon Musk promoting a cryptocurrency investment. The video looked authentic. The website linked in the post looked professional. Everything seemed legitimate until her money disappeared.
Recovery Scams: The Second Victimization
After losing money to crypto scams, victims are often contacted by scammers claiming they can recover the funds for an upfront fee. Sometimes these are the same criminals who ran the original scam. Other times they're different scammers who purchased lists of previous victims. They promise to use special connections, hacking skills, or legal procedures to get your money back. They just need you to pay fees, taxes, or deposits first. This targets vulnerable people who've already lost significant money and are desperate for any possibility of recovery. Don't trust anyone claiming they can recover lost cryptocurrency for a fee. Cryptocurrency transactions are irreversible by design.
Warning Signs to Watch For
Guaranteed high returns
No legitimate investment can guarantee returns, especially high ones. Cryptocurrency is inherently volatile and risky. Anyone promising guaranteed profits is lying.
Pressure to invest quickly
Tactics like "limited time offer," "spots filling fast," or artificial urgency indicate a scam. Legitimate investments don't disappear if you take time to research.
Being told to use a Bitcoin ATM
Legitimate investments don't require cryptocurrency ATM deposits. Government agencies requesting payment via crypto is always fraudulent. Governments never accept cryptocurrency payments.
Unsolicited contact from strangers
Investment opportunities promoted through WhatsApp or social media by people you don't know should be ignored. Real investment opportunities don't come through random messages.
Fake celebrity endorsements
Claims that famous people are promoting specific crypto investments are fabricated. Real celebrities don't message random people about investment opportunities.
Inability to withdraw funds
Requests for additional fees, taxes, or penalties before you can access your money indicates a scam. Once you can't withdraw, you'll never see that money regardless of how many fees you pay.
Unregistered platforms
Platforms not listed with ASIC or major exchanges lack oversight and consumer protections. Always verify registration before investing.
Complex jargon to confuse
Technical language used to confuse rather than explain suggests scammers trying to prevent informed questions.
High referral bonuses
Rewards for recruiting others indicate pyramid scheme structure where your returns depend on finding new victims rather than actual investment performance.
How to Protect Yourself
Never use crypto ATMs for payments
Government agencies and legitimate businesses do not accept cryptocurrency ATM payments. If someone directs you to a crypto ATM to make a payment for any reason, it's a scam.
Check ASIC's investor alert list
Before investing in any cryptocurrency platform or token, check ASIC's investor alert list . This list flags known scam operations and unlicensed platforms.
Use established exchanges only
Stick to well-known, regulated cryptocurrency exchanges with proven track records and regulatory compliance.
Research thoroughly before investing
Don't rely solely on materials provided by the platform or person promoting the investment. Look for independent reviews, check regulatory databases, search for complaints.
Be skeptical of guarantees
No legitimate investment can promise specific returns, particularly high ones.
Start small
If you decide to invest in cryptocurrency, only invest amounts you can afford to lose completely. Cryptocurrency markets are volatile and scams are prevalent.
Ignore social media advertisements
Never invest based on social media advertisements. Celebrity endorsements and deepfake videos are commonly used in scams.
Seek independent financial advice
Consult licensed financial advisors before making significant investments. Professional advisors can help you understand risks and spot warning signs.
Don't mix romance and investing
Never take investment advice from online romantic interests. The intersection of romance scams and investment fraud is well-documented. If someone you met online starts discussing investment opportunities, end the relationship immediately. Read our pig butchering guide for more on this specific scam pattern.
Legitimate Cryptocurrency vs. Scams
Understanding the difference between legitimate cryptocurrency platforms and scams helps you make informed decisions.
Legitimate Platforms
Registered with ASIC or international regulators. They don't promise guaranteed returns because that would be illegal and misleading. They have clear, transparent fee structures published on their websites.
Withdrawals process normally without demands for additional fees or taxes. They're realistic about risks, openly discussing volatility and potential losses.
They have transparent team and company information with verifiable leadership.
Scam Platforms
Operate without registration or licensing. They guarantee high returns that sound too good to be true because they are. They hide fees or use confusing fee structures that become apparent only when you try to withdraw.
You can't withdraw funds without paying various "fees," "taxes," or "penalties" that keep escalating. They use pressure and urgency tactics to prevent careful consideration.
Their team members are anonymous or use fake identities with stolen photos and fabricated credentials.
What to Do If You've Been Scammed
If you've sent cryptocurrency to scammers or invested in a fake platform, take immediate action.
Stop all contact with the scammers
Cut off communication completely and block their numbers, emails, and social media accounts. Don't send more money regardless of what they promise or threaten. Ignore all requests for "fees," "taxes," or "penalties" to release your funds because this is part of the scam. No additional payment will result in you receiving your money back.
Contact your bank
If you've provided credit card or banking details to the scammers, contact your bank immediately. They may be able to stop transactions or prevent further unauthorised access.
Report to authorities
File reports with Scamwatch , ReportCyber , and local police. If it involved a fake investment platform, also report to ASIC.
Save all evidence
Collect messages, transaction records, screenshots, and platform URLs. Document everything before scammers delete accounts or websites.
Warn others
Report the scam on social media and to trading communities to prevent additional victims.
Beware of recovery scams
People claiming they can retrieve your lost cryptocurrency for a fee are always scams. Cryptocurrency transactions cannot be reversed, and no legitimate service charges upfront fees for recovery attempts.
With $122 million lost to cryptocurrency scams in 2024 and crypto fraud comprising 47% of all investment scams, awareness is critical. The combination of unfamiliarity with cryptocurrency, fear of missing out on financial opportunities, and sophisticated scammer tactics makes these frauds particularly effective. Remember that if someone is directing you to use a cryptocurrency ATM to make a payment, it's a scam. Government agencies and legitimate businesses do not accept cryptocurrency ATM payments under any circumstances.