Aussies warned of fake Bitcoin trading websites as cryptocurrency scams increase
Aussies looking to invest in boom cryptocurrency Bitcoin are being warned to carefully check the credentials of their trading platform after a spike in scams was detected.
Consumer watchdog Scamwatch today issued a warning to investors that scammers are frequently attempting to persuade Australians to invest in Bitcoin using too-good-to-be-true marketing strategies and tips.
"Thinking of investing in Bitcoin? Beware of scammers that take advantage of this being unregulated!" Scamwatch tweeted.
READ MORE: Warning over new MyGov scam telling people they are owed money
An example of a trading platform – Trade Capital FXT – that appeared to be real but really was a front for scammers to fleece unsuspecting investors. Scamwatch
"They may contact you on apps like Telegram and offer to show you how to trade."
Scamwatch provided an example of a trading platform – Trade Capital FXT – that appeared to be real but really was a front for scammers to fleece unsuspecting investors.
Recent data by the Australian Competition and Consumer Commission (ACCC) – the same body that runs Scamwatch – shows that investment scams are by far the most profitable for criminals.
In 2020, investment scams accounted for a staggering $328 million worth of losses from known Australian victims.
READ MORE: NSW Health dismisses fake letter which claimed supermarkets would close
Investors are being urged to double check the legitimacy of whatever trading platform they are using to purchase cryptocurrency. iStock
ACCC Deputy Chair Delia Rickard said the true damage of these scams may be even higher, as the figures can only be taken from victims who willingly come forward.
"Last year, scam victims reported the biggest losses we have seen, but worse, we expect the real losses will be even higher, as many people don't report these scams," Ms Rickard said.
"Unfortunately scammers continue to become more sophisticated and last year used the COVID-19 pandemic to scam and take advantage of people from all walks of life during this crisis."
READ MORE: Tips for dodging scams after Australians lost $851m in 2020
A cryptocurrency ATM at a US convenience store. AP
Scamwatch advises that Australians should be "suspicious of investment opportunities that promise a high return with little or no risk".
"Do not give your details to an unsolicited caller or reply to emails offering financial advice or investment opportunities - just hang up or delete the email," it warns.
"Do not let anyone pressure you into making decisions about your money or investments and never commit to any investment at a seminar - always get independent legal or financial advice."
Share a tip-off, video or photo with us
