By CryptoDealZone.com
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It Is Much, But It’s Dishonest Work
In 2025, crypto scams aren’t just lurking in shady Telegram groups or sketchy emails — they’re sliding right into your text messages. And it’s a billion dollar industry for crypto-related scams alone – 10 billion dollars, to be precise.
Australian investors though, are being especially targeted by a wave of highly sophisticated SMS scams that impersonate legitimate cryptocurrency exchanges. The alarming part? These messages are so convincing they even appear in existing text threads from your bank or exchange.
I had the pleasure of experiencing my first crypto security threat recently, in fact it was roughly one month ago as I’m writing this piece. Although it wasn’t the same scam Australia is currently plagued with, it did use a similar ‘sense of urgency’ tactic that, to be quite honest, worked on me for the better part of 2 minutes before I started to consider its legitimacy.
I was lucky that I took a moment to think – I could easily have acted within those first 2 minutes and gifted my 30 dollars worth of Ethereum to a scammer who I could then only hope would have been bitterly disappointed at my small amount of crypto held in my hot (online) wallet (thank you hardware wallets).
So how are these scammers pulling this off — and more importantly, how can you protect yourself? Let’s break it down.
📲 How the Crypto Text Scams Work
This isn’t some low-effort Telegram scam. These scammers are smart, and they’re using tactics that would fool even experienced traders.
It starts with a text message — but not just any text. Scammers are using SMS spoofing to sneak fraudulent messages into legitimate threads from exchanges or banks.
If you’ve ever received a one-time password (OTP) from Binance or Kraken, the scammer’s message might show up right below it. That’s how convincing it looks.
The message usually claims something alarming (thus the sense of urgency)— a large withdrawal you didn’t authorize or a suspicious login attempt. Naturally, you panic and click the link to “secure” your account.
The link takes you to a near-identical clone of a legitimate exchange. Same branding, same login page. You type in your credentials, maybe even your 2FA code — and just like that, the scammers have the keys to your wallet.
“It looked so real. I thought I was protecting my account — instead, I handed over everything.” — Michael, Melbourne
Once they have your login details, they can drain your funds in minutes. Some scams even go further, asking for additional verification details to bypass security protocols.
🎯 Why Australia Is a Prime Target
So why is this scam blowing up in Australia specifically? Three big reasons:
High Crypto Adoption
Over 25% of Australians now hold some form of cryptocurrency — one of the highest rates of adoption in the world. More crypto = more targets.
Weak SMS Regulations
Unlike the U.S. or Europe, Australian telecom providers aren’t required to verify SMS sources. That means scammers can easily spoof official messages without setting off alarms.
No Safety Net
Most Australian banks and exchanges won’t reimburse crypto losses due to hacking or scams. Once your Bitcoin is gone, it’s gone.
And the timing isn’t random. Crypto adoption in Australia has skyrocketed in the last 18 months — but regulations haven’t kept up. Scammers are capitalizing on the perfect storm of high adoption and weak protection.
💸 Real Stories from Real People
“I Lost $12K in 10 Minutes”
Michael, a 29-year-old from Melbourne, received a text from “Binance” saying his account was locked due to suspicious activity. He clicked the link, logged in — and within 10 minutes, $12,000 USDT was gone.
“It wasn’t just the money I lost — it was the trust. How could something that official-looking be fake?”
“If I didn’t have 2FA, I’d (have) lost everything”
Emma from Sydney was targeted when scammers sent a fake “Kraken” text asking her to confirm a withdrawal. She entered her password — but when they also asked for her Google Authenticator code, she got suspicious.
Luckily, she refused — but not before they had already tried to change her email and password.
💥 The Scale of the Problem
This isn’t small-time fraud anymore. We’re talking big money.
📈 Australians lost over $221 million AUD to investment scams in 2024 — and crypto accounted for over $128 million AUD of that.
📈 SMS-based crypto scams alone have jumped by 63% year-over-year.
📈 The Australian Competition and Consumer Commission (ACCC) has called crypto scams a “national security concern.”
“Crypto scams now rival traditional banking fraud in terms of financial impact.” — ACCC report, February 2025
🏦 Why Exchanges Are Failing You
Exchanges say they’re working on it — Binance is adding verified messaging, Kraken’s improving authentication, and Coinbase is rolling out push notifications.
But here’s the truth: they’re not moving fast enough — and scammers know it.
Exchanges face legal hurdles when it comes to SMS spoofing. Telecom infrastructure in Australia makes it hard to trace and block fake texts. And honestly? Most exchanges don’t want to shoulder the financial risk of reimbursing stolen funds.
“Crypto is built on decentralization — but that also means there’s no one to save you when things go wrong.”
So yeah — they know it’s happening, but don’t expect them to step in and save you.
🛡️ How to Protect Yourself
You can’t stop scammers from trying — but you can make yourself a harder target.
🔒 Use a Hardware Wallet
The safest way to store your crypto? A hardware wallet like a Ledger Nano S Plus. Unlike an exchange, a hardware wallet stores your private keys offline — meaning even if a scammer gets your login info, they can’t access your funds.
👉 I personally recommend the Ledger Nano S Plus — it’s affordable, secure, and trusted by pros. If you’re serious about protecting your crypto, it’s worth the investment.
👉 Buy a Ledger Nano S Plus here (affiliate link)
(Full transparency: If you buy through this link, I’ll get a small commission at no extra cost to you— but I’d recommend a Ledger even if I wasn’t getting paid. It’s the best security move you can make.)
💡 Want to learn more about hardware wallets and cold storage? 👉 Check out my full guide on hardware wallets here.
🔒 Switch to an authenticator app — SMS-based 2FA is way too easy for scammers to intercept. Apps like Google Authenticator or Authy are more secure. (I know this can be annoying, but set it up if you haven’t already. It seriously strengthens your security)
🔒 Use IP whitelisting — Set your exchange account to only allow logins from specific IP addresses. Even if a scammer gets your credentials, they’ll hit a wall.
🔒 Stay sharp — Want to know the latest scam tactics to avoid? 👉 Check out my post on common crypto scams in 2025.
❌ If You’ve Been Scammed, Do This Immediately:
- Contact your exchange – Some platforms can freeze funds if you act quickly.
- Report to Scamwatch – The Australian government is tracking these scams.
- Change ALL passwords – If the scammer got into your exchange, they might try other accounts too.
- Contact a blockchain forensic service – Some firms specialize in tracking stolen crypto and may be able to help.
Stay Skeptical, Stay Safe
Crypto scams are evolving. First, it was phishing emails (Your long lost rich relative, Nigerian Princes and even Brad Pitt needing divorce settlement release funds). Now it’s SMS spoofing, but they are not as easy to identify as Brad Pitt.
I’ve been in this space for years, and even I almost fell for it one type of scam. Protect your wallet like you protect your bank account — because in crypto, you are your own bank.
💬 Have you been targeted by a crypto scam? Share your experience in the comments below!
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The information provided on CryptoDealZone.com is for informational and educational purposes only. It does not constitute financial, investment, legal, or tax advice. The information is not guaranteed to be accurate, always do your own research and consult professionals.
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