WHAT IS THIS SCAM?
What are fake crypto trading platform scams? Scammers are setting up fake crypto trading platforms designed to look like legitimate investment tools. They lure people in through social media ads and messaging app groups (such as WhatsApp and Telegram) that claim to offer trading tips. Once a victim deposits money, it goes directly to the scammer. No real trading ever takes place.
How do these fake platforms trick people? The platforms are built to look convincing. They display what appear to be live trades, growing account balances and profits. All of that data is completely fabricated. The goal is to build your confidence so you deposit more money before eventually trying to withdraw, at which point the scam is revealed.
Is Pepperstone Crypto one of these platforms? No. Pepperstone Crypto is a registered digital currency exchange, registered with AUSTRAC (Registration Number: 100889269) under Pepperstone Group Limited. You can verify our registration at any time using the AUSTRAC Virtual Asset Service Provider Register at online.apps.austrac.gov.au/vaspr.
HOW THE SCAM WORKS
What does this scam look like from start to finish?
You see a social media ad or post promoting share trading or crypto tips, sometimes featuring a well-known financial figure.
You are invited into a messaging app group (such as WhatsApp or Telegram) that appears to share expert trading recommendations.
Members of the group direct you to deposit funds into a specific crypto platform, which is fake and controlled by the scammers.
The platform shows fake profits to build trust and encourage you to deposit more.
When you try to withdraw, you are told you must pay a fee to "unlock" your funds.
No withdrawal ever occurs. All money deposited has gone directly to the scammer.
What is a recovery scam and should I be worried about it? Yes. If you have already lost money to a scam, you may be targeted a second time by someone claiming they can recover your funds for a fee. This is known as a recovery scam and is a separate fraud on top of the original. No legitimate service charges upfront fees to recover scam losses.
WHAT THESE SCAMS LOOK LIKE
What does a fake investment advice message look like? Scam messages are written to sound professional and credible. They often mimic the tone of a legitimate financial newsletter or trading alert. Here is what to watch out for:
The message comes from an unknown contact or is posted in a large group chat you were added to without requesting to join.
It references a well-known financial figure, celebrity or successful trader by name, claiming they are sharing exclusive tips.
It announces recent "profits" achieved by group members, often with specific percentages such as "20% returns this week," to create excitement and urgency.
It uses financial terminology to sound authoritative, referencing things like market capitalisation, fear and greed indexes, or portfolio strategies.
It encourages you to act quickly before a "window of opportunity" closes.
It includes a link or recommendation to a specific trading platform you have never heard of.
Example 1: Whatsapp scam message
Example 2: Whatsapp scam message
Example 3: Scam message
What does a fake trading platform look like? Fake platforms are designed to be nearly indistinguishable from real ones at first glance. Common signs include:
A professional-looking interface with live price charts, buy and sell buttons, and a portfolio balance display.
Your balance appears to grow steadily after depositing, even without actively trading, which is designed to build false confidence.
Withdrawal requests are met with a message requiring you to pay a fee, tax, or "release charge" before funds can be sent to you.
Customer support is unresponsive, hard to reach, or only available through the same messaging app where you were recruited.
The platform has no verifiable AUSTRAC registration. Always check at online.apps.austrac.gov.au/vaspr before depositing funds.
Example: Fake trading platform
WHO IS BEING TARGETED?
Could a Pepperstone Crypto user be targeted? Absolutely. Anyone active in crypto, including experienced traders, can be targeted. Scammers specifically seek out people who are already interested in crypto trading, making Pepperstone clients a potential target. Being informed is your best defence.
Are younger traders more at risk? Research by ASIC's Moneysmart found that younger Australians aged 18 to 28 are significantly exposed:
72% have seen social media ads about crypto
41% have been personally contacted by someone about investing in crypto
29% have made trades based on tips from social media influencers
Scammers know that social media is where many newer traders get their information, and they exploit that.
HOW TO PROTECT YOURSELF
How do I know if a crypto platform is legitimate?
Before depositing funds on any platform other than Pepperstone Crypto, ask yourself:
Is this platform registered with AUSTRAC? Check the Virtual Asset Service Provider Register at online.apps.austrac.gov.au/vaspr.
Did someone on social media or a messaging app recommend this platform to me? That is a common scam tactic.
Is the platform asking me to pay a fee before I can withdraw my funds? Legitimate platforms do not do this.
Can I find independent reviews or any scam warnings about this platform through a basic internet search?
What should I do if I am approached by one of these groups?
Do not share any personal or financial information.
Do not transfer funds to any platform you have not independently verified.
Do not feel pressured to act quickly. Urgency is a deliberate manipulation tactic used by scammers.
Stop all communication with the group or individual immediately.
WHAT TO DO IF YOU THINK YOU HAVE BEEN SCAMMED
I may have deposited money into a fake platform. What should I do immediately?
Contact your bank straight away to report the transfer and request it be stopped or reversed if possible.
Contact Pepperstone Crypto Support if the scam involved anyone impersonating Pepperstone Crypto, or if you have any concerns about your account.
Report the scam to Scamwatch at Home | Scamwatch . Reports can be made anonymously and help protect other Australians.
Visit Home - Moneysmart.gov.au for further guidance on next steps and how to protect yourself from follow-up recovery scams.
Where can I get support if I am feeling distressed? Being scammed can be a deeply stressful experience. Please do not hesitate to reach out for support:
Lifeline: 13 11 14 or online chat at Home | Lifeline
Beyond Blue: 1300 22 4636 or online chat at 24/7 Support for Anxiety, Depression and Suicide Prevention.
Pepperstone Crypto is registered with AUSTRAC (Registration Number: 100889269) and operates under Pepperstone Group Limited. If you have any concerns about your account or suspect fraudulent activity involving Pepperstone Crypto, contact our support team at support@pcrypto.com