Australian tax authorities are warning cryptocurrency investors of a text message scam impersonating the ATO.
Text scam doing the rounds
The Australian Tax Office has warned citizens not to fall for a text message scam related to crypto. The ATO put out the following message on Friday:
“Scammers pretending to be from the ATO are telling people they are suspected of being involved in cryptocurrency tax evasion. They are then asking them to ‘connect their wallet’ and provide detailed information via a link. If you receive an SMS or email like this, don’t click on the link. It will take you to a fake myGov log on page, designed to steal your personal information.”
The ATO further warned of scammers phoning or emailing people and pretending to be financial advisers or “super experts”. Scammers start by asking for personal information and try to trick unsuspecting victims into making online comparisons. The ATO also warned of scammers fraudulently operating under the name of legitimate businesses, even going as far as setting up websites that look legitimate and stealing the Australian Financial Service Licence (AFSL) of other businesses.
Crypto scams in Australia are rampant
The scam at hand is far from the first one in Australia, either.
The “Flubot” scam trying to trick people into clicking on a link they receive in a text message first appeared in Australia in August 2021. After clicking the malicious link, the device will be infected with malware without the user noticing it. The ACCC put out an alert for the Flubot scam, and Scamwatch reported that scammers are constantly updating their messages to appear legitimate. Flubot scams can compromise all information on your phone, including passwords and possibly private keys, if cryptocurrency wallets are accessed from the compromised phone.
Scamwatch also warned of infected phones sending messages to other numbers to keep the scam running. In this manner, unsuspecting users can become accomplices in scams without even knowing it.
Other scams you should look out for
With great opportunities comes great risk. Yields on cryptocurrencies would not be as juicy if investing was as easy and safe as investing in the stock market. Some of the most common scams you should look out for are:
- Celebrity scams: scams like the famous Elon Musk tweet promising a free Bitcoin giveaway.
- Fraudulent investments: ponzi schemes and rug pulls luring people in with the promise of fast and easy money.
- Hacked wallets: wallets that get compromised through scams like Flubot or security breaches on crypto exchanges.
- Cryptojacking: accessing foreign computers to mine cryptocurrency without the owner’s knowledge.
In our guide to crypto scams, we look at all of these in detail and cover other red flags in our top crypto scams article.
The crypto space is a wonderful place full of opportunities and great projects in the making, but it is also a dangerous jungle filled with predatory scammers. The next time you receive a text message or a Discord link with a juicy-looking offer, make sure to double and triple-check it to verify its authenticity.