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Fake Investment Platforms & Guaranteed Returns Scams

Updated over 2 months ago

Fake investment platforms are one of the most common crypto scam types in Australia, accounting for over $59 million in losses in the first half of 2025 alone. These scams promise high, guaranteed returns — something that does not exist in legitimate investing.

How It Works

The Promise
You see an ad on social media (Facebook, Instagram, YouTube) or receive a message promoting a crypto investment opportunity. It promises returns like "10% per week", "guaranteed daily profits", or "risk-free crypto trading."

The Professional-Looking Platform
You're directed to a website that looks highly professional — complete with live charts, account dashboards, and customer support chat. Some even have mobile apps. They look indistinguishable from real exchanges.

The Fake Profits
After depositing, your "portfolio" appears to grow rapidly. You may receive notifications about profits. This is all fabricated — the numbers on screen are not real.

The Block
When you try to withdraw, you're hit with requirements: "minimum withdrawal amount", "tax withholding", "security deposit", or "account verification fee." These are all invented barriers to extract more money from you.

Real-World Warning Signs

  • ASIC has taken down over 10,000 scam investment websites since 2023 — 21% involved cryptocurrency

  • Common fake platform names often include words like "AI", "Global", "Capital", "Pro", or "Trade"

  • Many use celebrity endorsements (without permission) featuring deepfake videos of public figures

  • Some advertise through legitimate-looking Google or Facebook ads

Red Flags

  • Guaranteed returns — no legitimate investment can guarantee profits

  • Pressure to deposit quickly ("bonus expires today")

  • The platform is not listed on ASIC's register or AUSTRAC's register

  • You can't find independent reviews or the reviews look fake

  • Customer "support" pushes you to deposit more instead of helping with withdrawals

  • You were introduced to the platform by someone online (possible romance scam crossover)

  • The website domain was registered very recently

How to Verify a Platform

  1. Search the AUSTRAC register for licensed digital currency exchanges

  2. Search for the platform name + "scam" or "review" online

  3. Check when the website domain was registered (very new = suspicious)

  4. Look for an Australian Business Number (ABN) and verify it on the ABR

Coinstash is registered with AUSTRAC (TWMT Pty Ltd) and regulated under Australian law. If someone directs you to a different platform to "invest" your Coinstash funds, treat it as a red flag.

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