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Fake Investment Platforms & Guaranteed Returns Scams

How fake crypto investment platforms lure you in with "guaranteed" returns, the warning signs, and how to check whether a platform is legitimate before you deposit.

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. This article explains how they work, the red flags, and how to check a platform before you send any money.

⚠️ 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 to "invest" or "earn"

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

If someone directs you to send your Coinstash funds to a different platform, treat it as a red flag and talk to our team first.

How it works

1. 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".

2. 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.

3. 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.

4. 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. Paying them will not release your funds.

Real-world warning signs

  • ASIC has taken down over 10,000 scam investment websites since 2023, and 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. See AI, Deepfake & Phishing Scams.

  • 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. Check ASIC Moneysmart's warning list.

  2. Search the AUSTRAC register for registered digital currency exchanges. You can also search AUSTRAC's VASPR register directly.

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

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

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

For a fuller checklist, see Known Scam Platforms and Warning Signs.

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.

What to do if you've already deposited

  1. Don't pay any more "fees" or "taxes" to unlock a withdrawal.

  2. Stop contact with the platform and anyone who introduced you to it.

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

  4. Report it to Scamwatch and ReportCyber, and contact your bank if you transferred money.

See the full step-by-step guide: I think I've been scammed — what should I do?

FAQ

The platform let me withdraw a small amount. Doesn't that prove it's real?

No. Allowing small early withdrawals is a common tactic to build your confidence before you deposit more. The real test is whether it's registered and verifiable using the checks above.

They say I have to pay tax before I can withdraw. Is that normal?

No. Being asked to pay "tax", "release fees" or a "security deposit" before you can withdraw is one of the clearest signs of a scam.

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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