Gen Z bombarded by fake crypto trading scams
In the already difficult-to-navigate world of online trading, young people are lured by the promise of easy money trading with cryptocurrency.
The problem is that the sites, transactions and profits are all fake and any money paid goes directly into the scammers’ pockets.
The scam operates by inviting young people to join business advice chat groups on messaging services such as WhatsApp, sometimes posing as high-profile individuals whom the fraudsters impersonate.
Scammers then offer victims to invest through a fake cryptoasset trading platform that shows profits and trades even though no real trades actually occur.
When the victim tries to withdraw their so-called profits, the scammers demand even more money through “withdrawal fees.”
Once money is transferred fraudulently, there is usually no way to get it back.
“If it sounds too good to be true, it probably is,” said financial watchdog boss Alan Kirkland.
Mr Kirkland, chairman of the Australian Securities and Investments Commission, said although anyone could be targeted, young Australians were particularly vulnerable to attack due to the volume of investment ads they see online.
“’These scams often involve flashy, fake trading platforms that show fake profits to entice people to invest,” Mr. Kirkland said.
“They even impersonate trusted brands and public figures to make fake investment opportunities look real.”
Advertisements for cryptocurrency platforms are quite common on social media; A survey of Gen Zers shows that 72 percent of respondents have seen ads and 41 percent have contacted someone about investing in crypto.
ASIC is warning young people to be extremely careful when investing in crypto, especially when invited to join groups via social media.
Young people are being urged to “Stop, Check and Protect” by taking the time to investigate whether a platform is properly registered or search online for the business via ASIC’s Moneysmart website.
ASIC advises anyone who thinks they have been scammed to contact their bank immediately.
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