Romance scams, also known as "pig butchering" scams, are the most financially devastating type of crypto scam. Victims in Australia lose an average of over $20,000. These scams are run by organised criminal networks, often based in Southeast Asia, and can take weeks or months to unfold. This article walks through how they work, the red flags, and what to do if you think it's happening to you or someone you know.
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How it works
Step 1: The approach
You receive a message on a dating app (Tinder, Bumble, Hinge), social media (Instagram, Facebook), or even a "wrong number" text on WhatsApp or SMS. The person is attractive, friendly and unusually interested in you.
Step 2: Building trust
Over days or weeks, they build a relationship. They share personal stories, photos and daily updates. They may video call using pre-recorded or deepfake footage. They never ask for money at this stage; they're building trust.
Step 3: The investment opportunity
Eventually, they casually mention they've been making great returns trading crypto. They might show screenshots of profits. They suggest you try it too: "just a small amount to start".
Step 4: The fake platform
They direct you to a website or app that looks like a real trading platform. You deposit money (often via crypto) and it appears to grow. You can even make small withdrawals early on to build confidence. It's all fake: the platform is controlled by the scammers. Often they'll coach you to buy crypto on a legitimate exchange first, then send it to the fake platform's wallet address.
Step 5: The drain
Once you've deposited a significant amount, you try to withdraw and are told you need to pay "taxes", "fees" or "insurance" first. These demands keep increasing. Eventually, the scammer and the platform disappear.
Real-world examples
A Melbourne woman lost $180,000 after a man she met on Hinge introduced her to a "crypto trading platform" over three months.
A Sydney retiree was contacted by a "wrong number" on WhatsApp. After weeks of friendship, the person convinced him to invest $95,000 in a fake crypto exchange.
A Brisbane professional was shown a "live trading dashboard" where her $10,000 investment appeared to grow to $85,000. When she tried to withdraw, she was asked to pay $12,000 in "release fees".
Red flags
Someone you've never met in person talks about crypto investing
They refuse or delay video calls, or the video quality seems "off"
They claim consistent, high returns with no risk
They direct you to a specific platform you've never heard of
The platform lets you make small withdrawals early, then blocks larger ones
You're asked to pay fees or taxes before you can withdraw your money
They discourage you from telling friends or family about the investment
They pressure you to invest more, saying the "opportunity" is limited
They tell you what to say if your bank or exchange asks about the payment
How to protect yourself
Never invest based on advice from someone you've only met online.
Verify any platform on ASIC's Moneysmart before depositing. See Known Scam Platforms and Warning Signs for more checks.
Be suspicious if you can't find the platform on the App Store or Google Play.
Talk to a trusted friend or family member before making investment decisions.
If it feels too good to be true, it is.
Be open with us and your bank
If anyone has told you what to say to Coinstash or your bank about a payment, or to keep it secret, that's a strong sign of a scam. Talk to our team honestly through the in-app chat. We won't judge you, and we'd much rather help before money is sent.
What to do if you think you're being targeted
Stop communicating with the person and don't send any more money or crypto.
Contact Coinstash Support through the in-app chat straight away. If you reach us quickly, we may be able to place a hold on your account to prevent further transactions.
Contact your bank if you transferred money.
Report it to Scamwatch and ReportCyber.
For the full checklist, see I think I've been scammed — what should I do? And be wary of anyone who then offers to recover your money for a fee: see Recovery Scams: Don't Get Scammed Twice.
Remember: the scammers behind these schemes are professionals. Being scammed is not your fault.
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