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How to Spot a Cryptocurrency Scam

This guide will help you recognise the most common scam tactics so you can protect yourself and your assets.

Cryptocurrency scams are on the rise in Australia and globally. In 2025 alone, an estimated $17 billion was stolen through crypto scams worldwide, with Australians losing over $174 million. This guide explains the golden rules that protect you from almost every scam, the most common scam types, and exactly what to do if you think something isn't right.

⚠️ Coinstash will never ask you to…

  • share your password, 2FA codes or recovery phrase

  • move, send or transfer your crypto or AUD to another wallet, account or platform, including a so-called "safe wallet"

  • contact us on WhatsApp, Telegram, Discord or social media DMs

Anyone who asks you to do any of these is a scammer, even if they know your name, email or account details.

The golden rules

Before we dive into specific scam types, here are the rules that will protect you from almost every scam:

  • Coinstash will NEVER ask you to move your funds to a "safe wallet". No legitimate exchange will.

  • Coinstash will NEVER contact you via WhatsApp, Telegram or social media DMs to ask you to take action on your account. We contact you through the in-app chat or from @coinstash.com.au email addresses.

  • If someone is pressuring you to act urgently, that is a red flag. Legitimate requests don't have a countdown timer.

  • If an investment sounds too good to be true, it is. There are no guaranteed returns in crypto.

  • Never share your password, 2FA codes or recovery phrases with anyone, not even someone claiming to be from Coinstash.

Why crypto scams are so damaging

Crypto transactions are irreversible. Once you send crypto to someone else's wallet, there is no "chargeback" or bank reversal. Scammers know this, which is why they push you to buy crypto and send it to them, or to "invest" through a platform they control. Prevention and early detection are your best protection.

Common scam types

Read our detailed guides on each type:

To check whether a platform is legitimate before you use it, see Known Scam Platforms and Warning Signs.

Quick check: is this a scam?

If you answer "yes" to any of these, stop and talk to us before doing anything else:

  • Did they contact you first, out of the blue?

  • Are they asking you to buy crypto and send it somewhere, or to move funds off Coinstash?

  • Are they promising guaranteed or unusually high returns?

  • Are they rushing you, or asking you to keep it secret from family, friends or your bank?

  • Are they asking for passwords, 2FA codes, recovery phrases or remote access to your device?

What to do if you suspect a scam

  1. Stop all communication with the suspected scammer immediately.

  2. Do NOT send any more money, even if they say it's needed to "release" your funds.

  3. Contact Coinstash Support through the in-app chat or email [email protected]. If you reach us quickly, we may be able to place a hold on your account to prevent further transactions.

  4. Report to Scamwatch at scamwatch.gov.au.

  5. Report to ReportCyber at cyber.gov.au/report.

  6. Contact your bank if you transferred fiat money.

If you've already sent cryptocurrency to a scammer, recovery is unfortunately very difficult because crypto transactions are irreversible. Follow the full step-by-step guide in I think I've been scammed — what should I do?

Protect your Coinstash account

Useful resources

Need a hand? Our Brisbane-based support team is here to help — tap the chat icon in the app or on the website to get in touch.

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