Fake investment and crypto advisers: the call that promises big returns

Fake investment and crypto advisers: the call that promises big returns

It often starts with an ad on Facebook or YouTube: a well-known Australian businessperson or TV presenter "revealing" a crypto trading platform that's making ordinary people rich. You leave your name and number to "find out more", and within hours a friendly, confident "account manager" calls. Or the call simply comes out of the blue. They talk about bitcoin, AI trading, forex or pre-IPO shares, with returns no bank could match. This is an investment scam, one of the costliest scam types in Australia, and the people behind it are skilled at sounding like professionals.

How does the scam work?

1. The hook. A fake news article or celebrity ad, a cold call, or a contact who started chatting on a dating app or social media and later "shares a tip".
2. The small first deposit. They ask you to start with a few hundred dollars. You're given access to a slick online platform that shows your money growing fast.
3. Remote "help". They may ask you to install AnyDesk or a similar app "to help you set up your account", or to open a crypto exchange account and send funds from there.
4. The bigger deposits. Seeing the profits, you're encouraged to invest more: savings, super, a loan, the equity in your home. The "adviser" calls often, building a personal relationship.
5. The wall. When you try to withdraw, there's always a problem: fees, "taxes", "anti-money laundering checks" that require another payment first. Eventually the platform disappears and the phone stops answering.

What is the recovery scam?

Weeks or months later, someone else calls: a "law firm", "blockchain investigator", "government agency" or even "ASIC" or "the AFP" claiming they've traced your money and can get it back, for an upfront fee. This is the second scam, often by the same group, who know exactly how much you lost. Genuine regulators and police don't charge fees to recover money.

What are the red flags?

• Guaranteed or very high returns with "no risk".
• Pressure to act fast: "the window closes tomorrow", "limited spots".
• Celebrity endorsements. Well-known Australians have repeatedly had their names and faces used in fake ads without their consent.
• The company isn't licensed in Australia. Anyone offering financial products or advice here generally needs an Australian financial services (AFS) licence or to be an authorised representative.
• Payment in crypto, or to an individual's bank account, rather than to a licensed firm.
• Requests for remote access to your computer or phone.
• You can't withdraw without paying more first.

What do I do if they're calling right now?

1. Don't commit to anything on the call and don't send any money, however small.
2. Ask for the company's full name and its AFS licence number, then hang up.
3. Check it yourself on ASIC's registers. Make sure the contact details match the register exactly: scammers often clone the names and licence numbers of real firms. ASIC's Moneysmart website also keeps an investor alert list of entities it has concerns about.
4. Don't install any app they recommend for "support" and never give remote access.
5. Block the number and report it in the spam numbers directory.

What if I've already invested or paid?

1. Stop sending money. No further deposit will unlock your "profits".
2. Call your bank on the number on your card or in its app. Explain it's an investment scam and ask them to try to recall payments and block further transfers to the same recipients.
3. If you paid in crypto, contact the exchange you used through its official support with the transaction details and wallet addresses. Australian digital currency exchanges have to be registered with AUSTRAC, so it's also worth noting which exchange you used for your report.
4. If you gave them remote access, disconnect the device, uninstall the app and change your passwords from another device.
5. If you sent ID documents, contact IDCARE (1800 595 160) for free help.
6. Report it: to police through ReportCyber via the AFP's cybercrime page, to Scamwatch, and to ASIC, which can act against unlicensed operators and scam websites.
7. If your bank won't help, you can lodge a free complaint with the Australian Financial Complaints Authority (AFCA) after first complaining to the bank.

How do I avoid the second scam?

• Nobody legitimate charges an upfront fee to recover scam losses. Not police, not ASIC, not your bank.
• Be wary of anyone who already knows how much you lost and contacts you out of the blue.
• Check any firm offering recovery services the same way: independently, through official registers and contact details you found yourself.

Frequently asked questions

I saw the ad with a well-known celebrity. Isn't that a guarantee? No. Those ads are almost always fakes using a celebrity's image without permission. A real investment doesn't need a celebrity to sell it.

They let me withdraw a little at the start. So it's real? That small withdrawal is part of the hook. It costs them little and convinces you to deposit far more.

Can I get back what I sent in crypto? It's difficult, but report it quickly to the exchange, your bank and police. Sometimes funds can be frozen if they're traced in time.

They call from an 02 or 03 number. Does that mean the firm is in Australia? No. Local-looking numbers can be spoofed or rented from anywhere in the world. Only the ASIC registers tell you whether a firm is licensed here.

In short

Guaranteed returns, celebrity ads, crypto payments and an adviser who won't let you withdraw are the signature of an investment scam. Check every firm on ASIC's registers, never give remote access, and never pay to "recover" your losses. If you've already invested, call your bank, report it to ReportCyber, Scamwatch and ASIC, and talk to IDCARE. And report the number in the NoCall spam numbers directory.