Top 5 Investment Scams Australians Are Reporting in 2025

Introduction

In 2025, investment scams remain one of the most financially devastating types of fraud in Australia. According to the Australian Competition and Consumer Commission’s Scamwatch, Australians lost over $1.5 billion to investment scams in 2024 alone — and early 2025 reports suggest the trend is continuing.

The rise of artificial intelligence, deepfake videos, and sophisticated social engineering has made it harder than ever to tell a legitimate investment opportunity from a fraudulent one. Scammers are using everything from fake trading platforms to impersonating licensed financial advisers to win victims’ trust.

At CyberShield Academy, our mission is to educate Australians on online safety. In this guide, we reveal the top 5 investment scams Australians are reporting in 2025, the warning signs to watch for, and the steps you can take to protect your hard-earned money.

1. Cryptocurrency Trading Scams

Cryptocurrency remains a hot topic in 2025 — and scammers know it. Fake trading platforms promise high returns from Bitcoin, Ethereum, or other altcoins, often using celebrity endorsements or fake news articles to lure victims.

How They Work

• Victims are shown fabricated “success stories” with screenshots of massive profits.

• Fake apps or websites mimic real crypto exchanges.

• Once you deposit funds, withdrawals become “pending” or “locked” until you invest more.

Example

In early 2025, Australians were targeted with a scam using a deepfake video of a famous finance commentatorendorsing a fake trading site. The video looked real enough to fool even experienced investors.

Prevention Tips

• Only use Australian-registered exchanges listed on AUSTRAC.

• Search ASIC’s “Companies You Should Not Deal With” list.

• Be suspicious of any guaranteed return.

2. Ponzi & Pyramid Schemes

Ponzi schemes promise consistent returns, often claiming profits come from “investments” but actually paying earlier investors with money from new recruits. Pyramid schemes focus on recruitment rather than genuine products or services.

How They Work

• Early investors receive small payouts to build trust.

• Participants are pressured to recruit friends and family.

• Eventually, the scheme collapses when recruitment slows.

Warning Signs

• Earnings depend on recruiting others.

• No clear explanation of how profits are generated.

• Promises of steady returns regardless of market conditions.

Real Case

In 2024, ASIC shut down an unlicensed “wealth creation” club that recruited over 3,000 Australians with promises of 20% monthly returns.

3. Fake Share & Bond Offers

Fraudsters impersonate legitimate brokers or financial institutions to sell non-existent shares, bonds, or pre-IPO opportunities.

How They Work

• Scammers contact victims via email, phone, or LinkedIn.

• They use stolen company logos and official-sounding jargon.

• Victims are urged to “act quickly” before the deal closes.

Red Flags

• Pressure to invest immediately.

• No verifiable listing on the Australian Securities Exchange (ASX).

• Documents with spelling or formatting errors.

Protection

• Check the company’s AFSL (Australian Financial Services Licence) on ASIC Connect.

• Never transfer funds to an overseas account for an Australian investment.

4. Property Investment Scams

With rising real estate prices, property scams are evolving. Fraudsters offer overseas property deals with guaranteed rental income, or fake land developments within Australia.

Common Tactics

• Use professional websites with fake testimonials.

• Offer “exclusive” deals to a select group of investors.

• Use forged land titles to appear legitimate.

Example

A 2025 scam involved fake “eco-resort” developments in Queensland, where victims lost millions after being shown fabricated building permits.

Avoidance Tips

• Verify titles via the official state land registry.

• Conduct an independent legal check before signing anything.

• Be cautious of “off-the-plan” deals with unrealistic returns.

5. Forex & Binary Options Fraud

Foreign exchange (forex) and binary options trading can be legitimate but are also rife with scams, especially from unregulated overseas platforms.

How They Work

• Victims are shown fake trading dashboards with “live profits.”

• Once funds are deposited, scammers manipulate the results.

• Withdrawals are blocked unless further deposits are made.

Red Flags

• Platforms not licensed by ASIC.

• Aggressive cold calls promising “risk-free” forex trading.

• Upfront fees to release your own funds.

Warning Signs of Any Investment Scam

Whether it’s crypto, property, or shares, most scams share the same tell-tale signs:

1. Guaranteed returns with little or no risk.

2. High-pressure sales tactics — “Act now or miss out!”

3. Unlicensed operators or unverifiable credentials.

4. Unusual payment methods like cryptocurrency or wire transfers.

5. No clear documentation or poorly written contracts.

How to Protect Yourself from Investment Scams

1. Verify Before You Invest

• Search ASIC Connect for the company or adviser’s licence.

• Check Scamwatch for warnings about the business.

2. Take Your Time

• Genuine opportunities won’t disappear overnight.

• Scammers rely on rushed decisions.

3. Use Trusted Platforms

• For trading: Stick to AUSTRAC-registered Australian exchanges.

• For property: Verify through government registries.

4. Keep Personal Info Safe

• Never send scans of your ID to unverified parties.

• Use multi-factor authentication for trading accounts.

How to Report Investment Scams in Australia

If you suspect an investment scam:

1. Scamwatch (ACCC) – https://www.scamwatch.gov.au
   Report details including names, phone numbers, and emails used.

2. ASIC Report Misconduct Tool – https://asic.gov.au
   Especially for scams involving shares, bonds, or investments.

3. Australian Cyber Security Centre (ACSC) – https://www.cyber.gov.au
   For online scam and cybercrime reporting.

4. Local Police – If money has been transferred and fraud occurred.

Final Thoughts

Investment scams are becoming more sophisticated in 2025, but with awareness, verification, and caution, you can protect yourself and your finances. Remember:

If it sounds too good to be true — it probably is.

At CyberShield Academy, we are committed to helping Australians recognise, avoid, and report scams. Share this guide with family and friends to help protect others from falling victim.

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