ASIC's Warning: The 'Stock Tips' WhatsApp Groups Funnelling Aussies Into Fake Crypto Platforms

The Invitation That Looked Like a Trading Community

You receive a message on WhatsApp or Telegram inviting you to join a group called "Profit Pathways" or "ASX Elite Traders."

Inside, members share daily market updates, crypto price movements and investment calls from someone claiming to be a well-known financial expert.

The group looks active. The advice looks credible. Then comes the recommendation: a fake crypto trading platform supposedly delivering 20% gains a week.

On 25 May 2026, ASIC issued an urgent scam alert warning Australians that this exact playbook is being used to steal money across the country.

ASIC's May 2026 Scam Alert: What Regulators Found

ASIC's scam alert identified a growing tactic in which criminals first target victims through social media advertisements promising share trading tips and expert investment calls.

Once a victim clicks through, they are funnelled into a messaging app group — typically on WhatsApp or Telegram — where scammers pretend to share insights from well-known financial figures.

The group eventually steers victims toward a fake crypto asset trading platform the scammers control entirely.

The platform displays live charts, portfolio values and profit figures. None of it is real.

"Any money deposited into these platforms goes straight to the scammers," ASIC stated in the alert.

The warning comes as investment scam losses in Australia reached $837.7 million in 2025, according to the National Anti-Scam Centre's Targeting Scams Report. Total scam losses for the year hit $2.18 billion.

How the Fake Crypto Trading Platform Scam Works

1. Social media hook. Victims see an advertisement on Facebook, Instagram or YouTube promoting trading tips and impressive returns.
2. The group invite. Clicking through leads to a messaging app group where dozens of apparent members share tips and "wins."
3. A trusted name is used. Scammers impersonate well-known Australian investors, financial commentators or prominent global figures to build credibility.
4. The platform recommendation. The group steers victims toward a specific fake crypto trading platform with a polished, professional-looking interface.
5. Small wins first. Initial deposits appear to grow rapidly. Victims are encouraged to invest more to maximise returns.
6. The withdrawal block. When victims try to access funds, the platform demands fees — claiming these are taxes, security deposits or verification charges. The fees go directly to the scammers. No assets are ever released.

Young Australians Are Being Specifically Targeted

While investment scams have historically preyed on older Australians, this wave of fake crypto trading platform scams is disproportionately targeting younger demographics.

ASIC's own Moneysmart research — published alongside the May warning — found alarming levels of exposure among Australians aged 18 to 28:

• 72% of Gen Z Australians surveyed had seen social media advertisements about crypto.
• 41% had been contacted by someone about investing in crypto.
• 29% said they conduct short-term trading based on social media influencers.
• 23% already own crypto assets, with two-thirds taking a short-term or speculative approach.

Scammers understand that younger Australians are actively engaging with crypto and looking for investment communities. The fake trading groups are engineered to look identical to the legitimate ones they already follow.

The Recovery Scam Layered on Top

ASIC also flagged that the same criminal networks are running a secondary scam specifically targeting people who have already lost money to fake trading platforms.

After a victim loses funds, they may be contacted by someone claiming to be a recovery specialist — offering to retrieve stolen assets in exchange for an upfront fee.

The National Anti-Scam Centre confirmed that recovery scams are disproportionately targeting people who have already been victimised, compounding their losses further.

If you have lost money to a fake crypto platform and someone contacts you offering recovery services, that offer is almost certainly a second scam.

Warning Signs: How to Spot a Fake Crypto Trading Group

• You were added to the group without requesting access
• The group heavily promotes a single trading platform or token
• A well-known investor or influencer appears to personally run the group
• Profits are described as consistent, guaranteed or risk-free
• You are encouraged to invest more to "unlock" better returns
• Withdrawals are blocked behind fees described as taxes or verification charges
• The platform cannot be found on the AUSTRAC Virtual Asset Service Provider Register
• All contact is limited to messaging apps with no verifiable company details

How to Protect Yourself From Fake Crypto Trading Platforms

1. Check the AUSTRAC VASPR register. Any legitimate cryptocurrency business operating in Australia must be registered. Search the Virtual Asset Service Provider Register before depositing anything.
2. Verify the financial figure being impersonated. Search the investor's name directly and confirm they are genuinely associated with the group through official channels.
3. Never invest based on a messaging group recommendation. Legitimate investment platforms do not recruit clients through WhatsApp or Telegram groups.
4. Test withdrawals immediately. Before depositing significant funds, attempt a small withdrawal. Platforms that block, delay or charge fees on withdrawals should be treated as scams.
5. Search the platform name alongside "scam." Most fraudulent platforms leave a trail of victim reports within weeks of launch.
6. Do not pay fees to access your own funds. No legitimate platform requires additional deposits or tax payments to release your investment.
7. Report to Scamwatch. If you have been targeted, report the incident immediately. Anonymous reporting is available at scamwatch.gov.au.

If you have already transferred money, contact your bank immediately. Acting quickly can sometimes freeze transactions before funds reach criminal accounts offshore.

Sources

• ASIC Scam Alert — Scammers luring investors onto fake crypto-asset trading platforms (25 May 2026)
• ASIC Media Release 26-063MR — ASIC ramps up action to protect consumers from AI-powered online investment scams (8 April 2026)
• ASIC Moneysmart — Gen Z Financial Behaviours Report 2026
• National Anti-Scam Centre — Targeting Scams Report 2025
• AUSTRAC Virtual Asset Service Provider Register