What is crypto?
Crypto assets, often shortened simply to ‘crypto’, are digital assets described as coins, tokens, or cryptocurrencies. They represent your ownership of something valuable and may, or may not, be backed by physical assets. The most well-known crypto assets include Bitcoin, Ether, and Dogecoin.
These assets do not exist physically, like coins or notes. Instead, they use cryptography (a form of encryption) and technology like blockchain for security. The Reserve Bank of Australia (RBA) explains how this works.
The value of crypto is very volatile and can go up or down quickly in a short period of time, making it a high-risk investment. You must be prepared to lose what you invest and be wary of scammers.
What are the risks of crypto?
Volatile.
Crypto has no legislated value – it is simply worth what people are willing to pay for it in the market. Their value can go up or down quickly due to things like media hype or investor opinion, making them a very high risk and volatile investment.
Scams.
Crypto is a common tool for scammers because it is difficult to trace, can be sent overseas quickly, and isn’t easy to recover.
There are three main types of crypto scams:
- investing in a fake crypto exchange, website or app
- using crypto to pay scammers
- fake crypto products or jobs trading crypto.
If you lose money to a crypto scam, it’s very unlikely you will get it back. Always do your research and only invest what you can comfortably afford to lose.
Minimal protection.
Crypto is not considered legal tender in most countries, including Australia. If a crypto platform or your crypto wallet is hacked or fails for whatever reason, there is no guarantee you will be protected.
Warning signs of a crypto scam.
Remember: if something seems too good to be true, it probably is!
Fake celebrity endorsements
Returns that are too good to be true
High pressure tactics
Protecting yourself against crypto scams.
Be wary of unexpected contact.
Always independently verify who you are dealing with, especially if they are contacting you out of the blue. For detailed steps on how to do this, visit check before you invest
Confirm their AUSTRAC registration number.
Any business that provides digital currency exchange services must be registered with AUSTRAC.
Check the ASIC investor alert list.
This is a list of suspicious companies, businesses, and websites that cannot be trusted.
Discuss with someone you trust.
If you’re thinking of making a large deposit, investment, or money transfer, talk it through with a finance professional or even your bank teller. They may be able to spot something you’ve missed.
How we help keep you safe.
We have protections in place to help minimise our members’ exposure to cryptocurrency scams and threats, including:
- blocking outbound payments to some cryptocurrency exchanges
- placing limits on some cryptocurrency related transactions.
These safeguards are part of our broader risk management framework, which we regularly update as the banking environment and scam trends change.
Think you've been scammed?
Contact us on 13 25 85 or visit your local branch immediately.
Common scams and fraud.
Learn about the different types of scams and fraud, and what to do if it comes your way.
How to spot a scam
Latest scam and security alerts.
Stay aware of the latest scams and fraud targeting Beyond Bank customers.
Stay informed
Account safety tips.
Things you can do to make it harder for scammers to target you and your loved ones.
Account security tips