The Australian Securities and Investments Commission (ASIC) has issued an investor alert regarding an increase in investment scams using messaging apps and fake cryptocurrency trading platforms. According to Finance Magnates, ASIC explained, "Scammers approach users by pretending to offer stock and cryptocurrency investment information in messenger group chat rooms, such as WhatsApp, and then lure them to fake trading platforms that display false returns and balances." ASIC also stated that additional harm is caused when victims are asked to pay extra fees if they attempt to withdraw funds, and there is an increasing trend of secondary scams where 'fund recovery services' are offered to investors who have already fallen victim to pump-and-dump schemes. ASIC advised investors to be wary of investment solicitations based on social media and messaging apps and to verify whether the relevant companies have completed AUSTRAC Virtual Asset Service Provider (VASP) registration.
