Australian Securities and Investments Commission warns of fraudulent crypto trading platforms, with young investors becoming the main target

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Deep Tide TechFlow News, May 26 — According to FinanceFeeds, the Australian Securities and Investments Commission (ASIC) has issued a warning, alerting that scammers are using messaging apps like WhatsApp and fake cryptocurrency trading platforms to scam retail investors. The scammers typically first post investment advice on social media to attract users into message groups disguised as well-known financial figures or trading communities, then lure them into depositing funds into fake platforms. These platforms simulate profits by forging trading data, and when users attempt to withdraw, they are asked for additional "unlock fees," with all funds directly flowing into the scammers' accounts.

In addition, scammers target investors who have already suffered losses by promoting fake "fund recovery services" to carry out secondary scams. According to Moneysmart survey data, 23% of Australians aged 18 to 28 hold crypto assets, 72% of Generation Z have seen crypto ads on social media, and 41% have been directly persuaded to invest in cryptocurrencies, indicating a significantly higher risk exposure among young groups. ASIC warns investors to avoid blindly trusting social media investment advice and recommends verifying platform compliance through the AUSTRAC Virtual Asset Service Provider Register.

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