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Scammers Exploit Government Tools
Authorities have issued a stark warning to cryptocurrency users after a new and highly sophisticated scam emerged in Australia.
According to the Australian Federal Police (AFP), scammers have been posing as law enforcement officers and using the government’s ReportCyber system to give their scheme an air of legitimacy.
ReportCyber, a tool designed for citizens to report cybercrimes, was manipulated by fraudsters who filed false reports about their intended victims. Later, they contacted these victims directly, pretending to be police officers investigating a cryptocurrency crime.
By referencing a legitimate government platform, scammers were able to convince victims that the communication was genuine — a tactic that has left even cautious users vulnerable.
A Convincing Deception Strategy
The AFP explained that the fraudsters took multiple steps to make their scheme believable.
After submitting fake reports to ReportCyber, the scammers would call their targets, urging them to check the report online to “verify” the legitimacy of the contact.
In one notable incident, scammers told a victim that they were involved in a criminal investigation connected to a crypto breach. To reinforce the ruse, they warned that another person — supposedly a representative from a cryptocurrency company — would contact the victim next.
This second scammer then tried to persuade the victim to move funds from their crypto wallet to another wallet “for safekeeping.” Fortunately, the target grew suspicious and terminated the call before any money was lost.
The AFP stated, “Thankfully, the target became suspicious and hung up.”
Authorities Expose the Scheme
Detective Superintendent Marie Andersson from the AFP’s cybercrime division said that the scammers’ methods were highly deceptive, combining fake identities, falsified official procedures, and realistic verification steps.
“They falsely claimed that an individual had been arrested and that the victim’s name had appeared in an investigation,” Andersson said. “Their process mirrors genuine law enforcement methods, making the scam appear credible.”
Andersson also emphasized that Australians should adopt strong digital safety habits and stay vigilant about unsolicited communications regarding cybercrime reports.
She added, “If you are contacted by someone about a ReportCyber report you didn’t lodge or authorize, terminate the call and contact ReportCyber immediately.”
Public Urged to Stay Vigilant
The AFP reiterated that real police officers will never ask for cryptocurrency wallet access, seed phrases, or private banking details.
The agency stressed that law enforcement officials also do not ask citizens to transfer funds, even for “security” or “verification” purposes.
This reminder is particularly important as scammers increasingly use social engineering and government-related tools to prey on victims.
By leveraging real government portals, cybercriminals create a powerful illusion of authority that makes victims lower their guard.
Australia’s Ongoing Battle with Crypto Crime
Australia has seen a rise in crypto-related scams over the past year, prompting authorities to intensify their crackdown on digital asset crimes.
In October 2025, the AFP revealed that it had successfully decrypted a cryptocurrency wallet backup containing 9 million Australian dollars ($5.9 million) — believed to be linked to criminal activity.
Earlier, in August, the Australian Securities and Investments Commission (ASIC) expanded its anti-scam operations. Since July 2023, ASIC has helped take down over 14,000 scam websites, with more than 3,000 cases involving cryptocurrency.
In July, Tasmania’s local police uncovered that the top 15 users of crypto ATMs in the state were all victims of scams, collectively losing $1.6 million AUD.
These figures highlight an alarming trend — scammers are adapting faster, using government tools, artificial intelligence, and deepfake technology to craft more convincing schemes.
Digital Safety First
Experts suggest several preventive measures to reduce exposure to such scams:
- Verify all contacts claiming to be from law enforcement through official phone numbers or websites.
- Never share wallet seed phrases, private keys, or two-factor authentication codes.
- Avoid transferring crypto assets to wallets provided by unsolicited callers or emails.
- Report suspicious activity immediately via the official ReportCyber platform.
The AFP also recommends Australians familiarize themselves with how legitimate police communication looks. In most cases, initial contact from law enforcement will occur through official correspondence or in-person visits, not through unexpected phone calls about crypto activity.
A Growing Global Concern
While this latest incident took place in Australia, similar police impersonation scams have been reported globally, targeting crypto users in Europe, the U.S., and parts of Asia.
The intersection of government credibility and financial urgency makes this type of fraud especially potent.
As crypto adoption rises, fraudsters are evolving their methods — moving from phishing emails to multi-layered impersonation tactics that exploit both trust and fear.
Final Warning from AFP
The Australian Federal Police concluded its statement by reminding the public to stay skeptical, even when a call appears to come from a government agency.
“Cybercriminals are becoming more sophisticated,” Andersson said. “Australians must be cautious of anyone asking for cryptocurrency transfers or wallet access — even if they claim to be police.”
With law enforcement working to tighten oversight and public education, Australia continues its mission to curb digital scams and protect crypto investors nationwide.