Crypto scam sites have become a critical threat in the digital investment landscape, especially for Australian investors. Over the past two years, the Australian Securities and Investments Commission (ASIC) has ramped up its efforts, taking down more than 14,000 scam websites—a staggering fifth of which are linked to cryptocurrency fraud. As new tactics like AI washing and sophisticated social media scams emerge, ASIC strengthens its actions to protect Australians from rising investment fraud.
Asic’s landmark takedown protects investors
Between 2023 and mid-2025, ASIC removed over 3,000 crypto scam sites from the internet. This aggressive crackdown represents nearly 20% of its total anti-scam operations targeting deceptive investment websites and phishing platforms. These scam websites often pose as legitimate trading or exchange services, luring unsuspecting Australian investors with the promise of quick returns but ultimately stealing their funds. The scale and speed of ASIC’s actions—averaging around 130 removals each week—demonstrate the urgency of tackling this growing threat.
Crypto scam sites hit Aussies hard
Investment fraud continues to be the priciest crime for Australians, reaching almost $1 billion in losses in 2024 alone. Crypto scam sites play a major role, exploiting both experienced and novice investors. Victims are commonly targeted via digital ads on social media platforms like Facebook and Instagram, which direct them to realistic-looking but fraudulent crypto and investment websites. Regulatory authorities warn that these phishing schemes frequently rely on polished design, fake trading charts, and AI-generated celebrity endorsements to gain investor trust.
Social media ads amplify the phishing threat
Social media ads have become a preferred channel for scammers, making it harder for Australian investors to distinguish between legitimate offers and crypto scam sites. ASIC has started to crack down on deceptive ads running across Facebook and Instagram, aiming to cut off a critical entry point for online fraud. By collaborating with social media companies, the regulator hopes to block misleading investment promotions before they lure more victims into phishing traps and fraudulent exchanges.
Money laundering and advanced scam tactics
Increasingly complex money laundering schemes are tied directly to crypto scam sites. In recent months, ASIC and local law enforcement in Victoria have charged multiple suspects with laundering funds through such fraudulent platforms. These operations use advanced cloaking techniques, making it difficult for even experienced users to detect scams. New methods, like AI washing, use deepfake technology and algorithmic deception, adding further hurdles for regulators and victims alike.
Asic’s ongoing commitment to consumer protection
ASIC’s anti-scam campaign is far from over. The regulator continually adapts its approach, now combining website takedowns, tighter social media monitoring, in-depth investigations, and collaboration with financial intelligence agencies. Their goal is to eliminate unregulated trading platforms, curb phishing and investment fraud, and keep Australian investors safe from evolving threats. Financial experts like Bridget Nichols from Monochrome stress the importance of awareness and skepticism when engaging with any online investment opportunity.
Frequently asked questions about crypto scam sites (FAQ)
What are crypto scam sites and how do they work?
Crypto scam sites are fraudulent websites that impersonate legitimate cryptocurrency exchanges or investment platforms. They trick users—often through phishing techniques and fake ads—into depositing funds, which are then stolen.
How does ASIC detect and take down these scam websites?
ASIC uses digital forensics, monitoring tools, and reports from the public to find scam sites. Once identified, they coordinate with internet providers to remove these sites from the web.
What is “AI washing” in the context of investment fraud?
AI washing involves scammers employing AI-generated materials—such as deepfake endorsements or fake chatbots—to make their phishing schemes and scam websites look more authentic and harder to spot.
How can investors avoid falling victim to crypto scam sites?
Always verify if an investment platform is registered with ASIC and search for user reviews on third-party sites. Be especially cautious of offers that come through social media ads or unsolicited messages.
Are social media companies helping in the fight against investment fraud?
Yes. Platforms like Facebook and Instagram are now cooperating with ASIC to identify and take down deceptive investment ads targeting Australian crypto investors.
Sources to this article
- ABC News. (2025). “ASIC steps up crypto scam crackdown in Australia.”
- Financial Review. (2025). “Investment scams drive nearly $1bn in losses.”
- ASIC Annual Report 2025.
- SMH. (2025). “AI and money laundering: The new face of online investment fraud.”
