A crypto scam is a fraudulent scheme or deception aimed at defrauding individuals or groups of their
cryptocurrency or investment funds. It can take various forms, such as Ponzi schemes, fake ICOs,
fraudulent investment schemes, and phishing scams that target individuals’ private keys or login
credentials. These scams often rely on social engineering tactics, such as promising high returns or
urgency to act quickly, to manipulate victims into handing over their cryptocurrency or personal
information. It is crucial to exercise caution and do thorough research before investing in any
cryptocurrency opportunity to avoid falling victim to a crypto scam.
ASIC has provided several pieces of advice on how to reduce the risk of falling victim to crypto
scams:
1. Do your research: Investigate by checking the legitimacy of the company or individual and
read reviews and forums to see what others have experienced.
2. Beware of promises of high returns: If an investment opportunity promises unusually high
returns or guarantees of profits, it is likely too good to be true.
3. Keep your private keys secure: Protect your private keys and passwords from being accessed
by anyone else, including never sharing them with anyone.
4. Be wary of unsolicited offers: If someone contacts you out of the blue with an investment
opportunity, be cautious, as it could be a phishing scam.
5. Use reputable exchanges and wallets: Use reputable and secure cryptocurrency exchanges
and wallets to buy, sell, and store your cryptocurrency.
6. Be cautious of ICOs: Initial coin offerings can be risky, so it’s essential to research the
company and the ICO thoroughly before investing.
Visit this link to find out more how to spot a cypto scam: https://asic.gov.au/about-asic/newscentre/find-a-media-release/2022-releases/22-305mr-asic-s-top-10-ways-to-spot-a-crypto-scam
