Crypto App Scam: Australians Lose $30m to Fake Trading Apps

Disclaimer: This post is for informational purposes only and does not constitute legal or financial advice. If you believe you have been targeted, contact your bank and local authorities immediately.

More than 12,000 Australians have lost $30 million to fake cryptocurrency trading apps since January this year.

How This Scam Works

Victims receive unsolicited texts or messages on social media promising guaranteed returns from fake trading apps. They click on a link to download the app and deposit money into the app's wallet. Once the money is in, scammers shut down the app, leaving victims with nothing.

Investors are often drawn to promises of easy money and high returns, which can reach up to 20% per week. These promises are designed to lure the uninformed and the desperate into the trap. Once you've clicked on the link and downloaded the app, it's too late. You'll likely be asked to provide sensitive information, such as your bank account details or passwords.

Some apps may use official-looking logos or screenshots to make it appear legitimate. 🚩 Be cautious of apps with these characteristics.

Who Is Being Targeted

Australians aged between 25 and 45, often with limited experience in cryptocurrency trading, are the primary targets. Scammers are using fake trading apps to trick people into sending money to international accounts, making it difficult for authorities to track the funds.

Red Flags to Watch For

🚩 Be wary of unsolicited messages or texts offering guaranteed returns. 🚩 Look out for fake logos or screenshots that make the app appear legitimate. 🚩 Be cautious of apps that ask for sensitive information, such as bank account details or passwords. 🚩 Avoid apps that promise unusually high returns, often above 10% per week. 🚩 Be cautious of apps that require you to deposit money into their wallet.

What to Do If You've Been Hit

1. Immediately contact your bank or financial institution to flag the transaction and prevent further losses.
2. Report the scam to Scamwatch and the Australian Federal Police.
3. Change your passwords and monitor your accounts for any suspicious activity.
4. Consider seeking the advice of a financial advisor or lawyer.

Where to Report

🇦🇺 Australia: Scamwatch 🇺🇸 USA: FTC ReportFraud 🇬🇧 UK: Action Fraud 🌐 International: Global Scam Reporting Directory

To protect yourself from falling victim to a crypto scam, use free scam checker.