Crypto investment scam
Fake trading platforms or 'mentors' promising big returns.
How it works
A stranger on social media or a dating app shows you screenshots of profits. They walk you through depositing on a fake exchange. Withdrawals 'fail' until you pay a tax or release fee — which is also stolen.
Common scenarios to watch for
This scam shows up in several different shapes. Recognise the pattern, not just one message.
Pig-butchering via dating app
A months-long romance moves to WhatsApp. They casually mention their 'uncle's' trading signals and a slick app. Small early wins convince you to deposit serious money — then withdrawals freeze.
"Dear, I made $4,800 yesterday on the new signal. Let me show you, just deposit $1,000 to try — I'll guide you step by step."
Red flags to spot
- Did someone you met online start talking about investment or trading?
- Are they showing screenshots of huge profits from an unknown platform?
- Are small withdrawals allowed initially but larger ones blocked?
- Are you being told to deposit more to 'unlock' your funds?
Telegram 'signal group' pump
A free signals group calls a small-cap coin. Members rush in, the organisers dump their pre-bought bags, and the price collapses 80% within hours.
"🚀 NEXT 100x ALERT — buy $PEPEMOON now, target 10c in 24h. Don't miss, group hit 95% win rate this month."
Red flags to spot
- Is a group promising guaranteed or near-guaranteed trading wins?
- Are you being pressured to buy a specific coin immediately?
- Is the coin obscure with no verifiable project or team?
- Do the organisers profit only when you and others buy in?
Withdrawal 'tax' extortion
After you ask to withdraw, the platform shows a fake balance and demands a 15% 'capital gains tax' or 'anti-money-laundering deposit' before releasing funds. None of it is real.
"Your withdrawal of $32,500 USDT is pending. Please deposit $4,875 (15% tax) to release. ATO clearance required."
Red flags to spot
- Is the platform demanding a fee or tax before releasing your withdrawal?
- Is the 'tax' percentage arbitrary and not matching real tax rules?
- Are you being told the deposit is refundable but it never is?
- Does the platform have no real regulatory licence or ABN?
Red flags
- 🚩Guaranteed or 'risk-free' returns
- 🚩Pressure to deposit more to 'unlock' a withdrawal
- 🚩Platform you've never heard of with a slick app
What to do
- 1Check the platform on moneysmart.gov.au investor alert list.
- 2If you can't withdraw a small test amount, it's a scam.
- 3Stop depositing immediately — the 'fees to withdraw' are never real.
Who's targeted
- Curious first-time crypto users chasing FOMO returns.
- People met on dating apps and 'wrong number' chats.
Why it works
- A trusted-looking dashboard shows fake profits in real time.
- Small early withdrawals build false confidence before the big deposit.
Common variations
Different shapes of the same scam — recognise the pattern.
- 1'AI trading bot' that 'never loses'.
- 2Insider tips from a 'fund manager' uncle.
- 3Mining pool or staking platform with locked-in periods.
If you've already been scammed
- 1Stop depositing — fees to 'unlock' funds are part of the scam.
- 2Screenshot wallets, chats and the platform before they vanish.
- 3Report to Scamwatch, the AFP-led JPC3 and your sending exchange.
Frequently asked
Can recovery agents get my crypto back?▾
Almost never. Anyone charging upfront to 'recover' funds is a second scam.
Why did the small withdrawal work?▾
It's bait — early payouts come from your own deposit to build trust.
Is the platform real if it has an app?▾
Side-loaded apps and TestFlight links bypass app store reviews — that's a red flag, not proof.
Related scams
Connected patterns you should also learn — ranked by how much they overlap with this one.
Deepfake celebrity investment
AI videos of celebrities promoting fake trading platforms.
Read guideRecovery (refund) scam
Scammers targeting people who've already been scammed once.
Read guidePig-butchering investment scam
A long-running scam blending romance and crypto investing — they 'fatten you up' before taking everything.
Read guide