How to?

Spotting and Avoiding Cryptocurrency Scams: Red Flags to Look Out For

10 Sep 20255min

How to?

The crypto market has come a long way, but so have the scammers who target it.

In the first half of 2025, Australians reported more than 108,000 scams to the National Anti-Scam Centre’s Scamwatch service, with total losses of around $174 million. Fake websites, online ads, and social media were the most common entry points for scammers.

Of these, 14,235 reports (just over 10%) involved cryptocurrency. While that’s a relatively small share of total scams, the impact on individuals can be significant. These scams often mirror bank impersonation tactics, using convincing platforms or messages to trick people into handing over funds.

Although crypto is not the issue, staying alert to scam red flags is essential to protect both your assets and your financial wellbeing.

Blockchains are immutable, meaning every confirmed crypto transaction is final. That permanence is what makes the technology transparent and secure, but it also means there’s no “undo” button if funds end up in the wrong hands.

That’s why spotting red flags and doing your due diligence before sending crypto anywhere is essential. With the right precautions, you can stay safe and enjoy the benefits crypto has to offer.

Key Takeaways

Crypto scams are rising in Australia. Iin the first half of 2025 alone, over 14,000 crypto scam reports were filed with Scamwatch, with losses in the hundreds of millions.
The most common crypto scams in Australia include investment scams, remote access scams, job scams, recovery scams, and social media scams.
To avoid a crypto scam, always verify platforms on ASIC’s Professional Registers, never share private keys or passwords, and always treat unsolicited contact as a red flag.
Blockchain transactions are irreversible. Once crypto is sent, it cannot be recovered. Vigilance before you transact is your strongest defence.
If you suspect you’ve been targeted by a crypto scam, stop contact immediately, report to Scamwatch, and notify your exchange or bank.

How Block Earner Protects Your Account

Your security is our highest priority, and we go to great lengths to keep your account safe:

Two-Factor Authentication (2FA): Every account requires 2FA — via SMS when trading, and an authenticator app when withdrawing crypto — adding an extra layer of protection beyond your password.
Facial Verification on Withdrawals: Before any crypto leaves your account, we confirm it’s really you with a secure facial verification step.
Advanced Monitoring: We actively monitor for unusual activity, block suspicious behaviour, and comply with strict AML/CTF regulatory requirements.
Local Support: Our expert team is based in Australia and available through our official Contact Us channel whenever you need assistance.

With these safeguards in place, you can focus on your crypto journey with confidence.

Staying Safe from Crypto Scams

At Block Earner, we will never ask for your passwords, private keys, or remote access to your devices. We will never pressure you into transferring funds to unfamiliar wallets, promise guaranteed returns, or contact you out of the blue asking for sensitive information (passwords, passport, driver’s licence etc).

If you ever receive a message, call, or email that feels suspicious, even if it appears to come from Block Earner, treat it with caution. Scammers often disguise themselves as trusted companies to trick you into acting quickly. Always double-check the sender’s details and never click on unexpected links or attachments.

When in doubt, don’t engage. Instead, contact us directly through our official website or in-app support to confirm whether the communication is genuine. Your security is too important to take chances on. Never hesitate to verify a communication through our official website (www.blockearner.com.au) and triple check the URL before sharing personal details.

Remember: Protecting your money and crypto starts with knowing the red flags.

Common Cryptocurrency Scams and How They Work

Knowing how to spot and avoid a crypto scam starts with understanding how each type works. Below are the most common crypto scams targeting Australians, along with the red flags and protection tips you need to stay safe.

Investment Scams

Investment scams begin with unsolicited contact via phone, email or social media to lure people with promises of high returns for minimal risk. Scammers impersonate brokers or “crypto experts” and may even allow small withdrawals to build trust before demanding larger sums. Scamwatch warns that crypto scams can involve fake trading platforms or apps that mimic real exchanges. Once you invest more, the platform locks you out and disappears.

Investment Scam Red flags:

Unsolicited contact from an unknown “broker” offering guaranteed high returns.
Pressure to transfer crypto or make an AUD payment to a new platform or to invest more to unlock your returns.
A trading app that isn’t available in official app stores.
Promises of tax‑free profits or requests to pay additional fees before withdrawing funds. Saying you need to pay tax or insurance to unlock your investments.

Investment Scam Protection tips:

Check credentials: Confirm the broker/platform is licensed on ASIC’s Professional Registers.
Use trusted apps: Only download from official app stores or direct exchange websites.
Ignore pressure: Urgency and “act now” tactics are a red flag.
Don’t pay extra: Real platforms don’t charge extra taxes or fees to release funds.
Verify independently: Search reviews and reports on Scamwatch before investing.
Contact directly: Use official contact details, not those given by a cold caller or email.
Trust your gut: If returns sound guaranteed or too good to be true, walk away.

Remote Access Scams

Remote access scams start with a phone call or message from someone claiming to be from a well‑known company (eg: an internet provider, telco or tech support) saying your computer has viruses or your internet is compromised and ask for remote access. Once connected, they can install malware, capture passwords and move your funds. Scamwatch explains that the caller may sound professional and become abusive or threatening if you refuse.

Remote Access Scam Red flags:

Unsolicited calls claiming your computer has problems.
Requests to download remote access software (TeamViewer, AnyDesk) or to provide personal information.
Pressure to log in to your crypto exchange while they are connected.

Remote Access Scam Protection tips:

Never give remote access to your computer.
Do not share passwords or financial details over the phone unless.
Keep antivirus and firewall software up to date.

Recovery or “Reclaim” Scams

Recovery scams target people who have already lost money in an investment scam. Fraudsters pose as law firms or recovery agents claiming they can retrieve lost funds for a fee. They might present fake credentials and templated “dispute letters”. There is no realistic way to recover crypto once it has been transferred; paying these fees simply results in further loss.

Recovery Scam Red flags:

Promises to recover lost funds.
Requests for upfront payment (“recovery fee”) or additional fees to cover taxes.
Generic documents or letters that look like templates; lack of official registration in Australia.
Email url is incorrect. Eg: instead of showing support@blockearner.com.au, the email may say support@xblockearner.com.au or support@1blockearner.com.au for example.

Recovery Scam Protection tips:

No fees, no recovery: Legitimate firms won’t ask for upfront “recovery” payments.
Check registration: Verify law firms or agents on Australian registers — scammers often aren’t listed.
Scrutinise documents: Watch for generic templates or poorly formatted letters.
Check email domains: Ensure addresses match the official website
Don’t engage twice: If you’ve already lost funds, don’t send more — it’s almost always a second scam.

Job Scams

Job scams have surged as scammers capitalise on cost‑of‑living pressures. In 2024, Scamwatch recorded over 3,000 job‑scam reports with losses totalling AU$13.7 million, and losses increased by 151% between 2022 and 2023. Scammers advertise fake jobs offering high pay for minimal effort and require payment in crypto to start. The NASC’s Job‑Scam Fusion Cell has removed more than 29,000 scam social media accounts and 1,850 fake job ads.

Job Red flags:

A “recruiter” contacts you unexpectedly via text or encrypted messaging apps.
The job offers unusually high pay with little work, or asks you to buy equipment or pay a training fee.
The recruiter asks for personal documents (passport, driver’s licence) before verifying the employer.
The job involves sending or receiving crypto or money on behalf of “clients” or setting up bank/crypto accounts—this could be money‑laundering.

Job Protection tips:

Verify employers: Cross-check the company on LinkedIn, or official job boards before sharing details.
Never pay upfront: Real jobs don’t require crypto, equipment fees, or training costs to start.
Protect your ID: Don’t send passports, licences, or bank details unless you’ve confirmed the employer’s legitimacy.
Avoid “money mule” tasks: Reject offers involving receiving/sending money or crypto for others — this could be money-laundering.
Stick to official channels: Apply through recognised job sites or company career pages, not random links sent via text or messaging apps.

Social Media Scams (Facebook and Instagram etc.)

Scammers impersonate legitimate crypto exchanges or influencers on social media. Posts may direct you to fake login pages or phishing links. On Instagram, scammers send direct messages pretending to be wealth managers or crypto traders. They show lavish lifestyles, fake testimonials and stolen images to build credibility, and promise huge returns for a small investment.

Social Media Scam Red Flags

Verify the account: official pages for exchanges have a blue verification badge. Be wary of pages without it or newly created profiles with few followers.

Don’t click on links sent via direct message. Instead, visit the exchange’s official website directly.

Ignore unsolicited investment offers or requests to send cryptocurrency to an external wallet. Genuine exchanges will not ask you to log in through a link sent via social media.

Social Media Scam Protection Tips

Look out for grammatical errors and inconsistent information; scam pages often replicate logos but make spelling mistakes.

Remember: If it seems ‘too good to be true’, it probably is.

Due Diligence and Practical Safety Tips

Knowing how to avoid a crypto scam comes down to due diligence before every transaction. Because blockchain transactions are irreversible, once funds leave your wallet they cannot be recovered. Use the practical steps below to reduce your risk of falling victim to crypto scams in Australia.

Question high returns

Be sceptical of promises of guaranteed or above‑market returns. Crypto markets are volatile and legitimate projects will not promise guaranteed profits.

Protect your accounts

Enable two‑factor authentication; use strong, unique passwords; never share private keys or seed phrases with anyone.

Be cautious of payment methods

Legitimate employers and service providers rarely request payment via cryptocurrency. Do not pay fees to “unlock” earnings or recover lost funds.

Limit information:

Never share copies of your identity documents unless you are certain of the recipient’s legitimacy.

Family and advisor communication

Discuss potential investments or requests for money with trusted family members or professional advisors; scammers often insist on secrecy.

Query unsolicited communication

If someone or a company has communicated with you out of the blue, be suspicious. Check that their email url is live & correct. Reach out directly to the companies’ Scam or Customer Service team to make sure the correspondence is legit.

What to Do If You Think You’ve Been Scammed

Stop all communication with the scammer. Do not send more money or provide additional information.
Contact your exchange or bank immediately to report the scam. Exchanges can sometimes freeze wallets associated with scams, and banks may prevent further transfers.
Change passwords and enable two‑factor authentication on all accounts.
Report the scam to Scamwatch via the National Anti‑Scam Centre. Reports help authorities to disrupt scam networks and warn others.
Seek support. Being scammed can be emotionally distressing. Organisations like IDCARE, Lifeline (13 11 14) or Beyond Blue (1300 22 4636) offer free help.

Final Thoughts

Scammers will continue to target crypto users because transactions are fast and irreversible. However, by understanding how common scams operate and being vigilant, you can significantly reduce your risk of becoming a victim. Always pause before sending funds or personal information, verify who you’re dealing with, and remember: if an offer sounds too good to be true, it almost certainly is.

Looking for a crypto platform you can actually trust? Block Earner is AUSTRAC-registered, Australian-owned, and built with security at its core. Explore our Crypto-Backed Loans today.

Frequently Asked Questions: Crypto Scams

Is crypto inherently a scam?

No. Cryptocurrency is a legitimate asset class, and in Australia it is regulated — exchanges must be registered with AUSTRAC and comply with strict anti-money laundering and counter-terrorism financing laws. The technology itself is transparent and auditable. The problem is not crypto; it's that the speed and irreversibility of blockchain transactions make it an attractive target for scammers. Choosing a reputable, AUSTRAC-registered exchange like Block Earner, enabling strong account security, and knowing the red flags are what keep you safe.

What should I do if I think I’ve been a victim of a crypto scam in Australia?

Act fast. Report to Scamwatch via the National Anti-Scam Centre, notify your exchange as soon as possible so they can flag the wallet, and contact your bank if any AUD payments were made. Acting fast gives authorities the best chance of disrupting the scam network, and protects others from falling victim too.

Can I actually get my money back after a crypto scam?

Unfortunately, recovering crypto once it has been sent is extremely difficult. Blockchain transactions are irreversible, so there is no “undo” button. However, reporting to Scamwatch, your exchange, and the police promptly can help freeze associated accounts and may limit further losses. Be cautious of recovery scams that promise to reclaim your funds for a fee. These are almost always a second scam.

What is a pig butchering scam?

A pig butchering scam (known in Chinese as shā zhū pán) is a long-con crypto investment scam where a fraudster builds a relationship with the victim over weeks or months, often starting as a romantic connection or chance encounter on social media before introducing a "exclusive" crypto investment opportunity. The scammer gradually encourages larger and larger deposits (the "fattening" phase) before disappearing with all funds. These scams are sophisticated, highly scripted, and increasingly common in Australia. If someone you've met online is steering the conversation toward crypto investments, treat it as a major red flag.

Are celebrity crypto giveaways real?

No. Legitimate celebrities, exchanges, and crypto projects do not give away free cryptocurrency in exchange for an upfront deposit. These are scams — typically run via fake social media accounts, deepfake videos, or hacked verified profiles impersonating figures like Elon Musk, David Koch, or major exchanges. The format is always the same: send a small amount of crypto and receive double back. You will never see those funds again. If you spot one, report it to Scamwatch and the relevant social media platform immediately.

Disclaimer: The information contained in this blog is general in nature and is provided for informational purposes only. It does not constitute financial, legal, or tax advice, and should not be relied upon as such. Block Earner does not guarantee the accuracy or completeness of any information presented. You should consider your own personal circumstances and seek professional advice before making any financial or investment decisions. Past performance is not indicative of future results. All investments carry risk.