Losing money to a crypto scam is brutal. The money is gone, the scammer has vanished and somehow the shame lands on you. What almost nobody tells you at that point is that the scammer is rarely the only party worth looking at.
The harder question is whether anyone else had a duty to stop it. A bank that waved through a string of large payments to a crypto exchange. A trading platform that was never licensed. A remittance provider that moved your money offshore without asking a single question.
Under Australian law the answer is sometimes yes. Not every case is worth pursuing and I will be straight about which ones are not. But plenty of people are told “you authorised the payment, so it is on you” and simply accept it. That deserves a second look.
Which Crypto Scams Can Lead to Legal Action?
Most Australian victims fall into a handful of patterns:
- Fake trading platforms. A slick dashboard, impressive “profits” and a withdrawal that never comes through.
- Romance and relationship scams. Weeks of trust building, then a gentle nudge toward a crypto “opportunity”.
- Impersonation scams. Someone posing as your bank, the ATO, the police or a well-known exchange.
- Payment redirection. A hijacked email account and changed payment details, with the money routed into crypto.
The type of scam matters less than you might think. What matters legally is who handled your money and what they knew, or should have known. The money usually travels from your bank to an exchange or remitter and then to a wallet. Each of those stops is a business with its own obligations.
When a Bank Can Be Responsible (and When It Can’t)
Banks are not insurers. If you authorised a payment, the starting position is that the bank had to follow your instruction. That is why so many refund requests get a flat no.
But banks are not passive pipes either. They hold licences and carry obligations of their own, including the duty to do things efficiently, honestly and fairly under the Corporations Act 2001 (Cth). The ASIC Act 2001 (Cth) implies a warranty of due care and skill in financial services supplied to consumers. Subscribing banks also sign up to the Banking Code of Practice, which commits them to act with the care and skill of a diligent and prudent banker.
The ePayments Code often gets mentioned in this space. It was designed mainly for unauthorised transactions and mistaken payments, so it frequently does not fit a scam where you made the payment yourself.
Your case tends to be stronger where:
- the payments were large or out of character for your account
- there was a rapid run of payments to one or more crypto exchanges
- you had no history of buying crypto
- the bank had already flagged, held or questioned some payments but let the rest through
- the bank did not follow its own fraud policies
Several major Australian banks have introduced holds, limits and blocks on payments to crypto exchanges. If your bank had that kind of system and it failed in your case, that is worth knowing.
Your case tends to be harder where you gave the bank a misleading reason for the payment, ignored a clear and specific warning or sent a modest amount to an exchange account in your own name. Those facts can be overcome, but I would rather you hear it from me now.
When the Bank Says No: Your Options
A refusal is the start of the process, not the end. There are three steps:
- Complain to the bank in writing. Banks have internal dispute resolution processes and generally must respond within about 30 days. Say clearly what happened, what you want and why you think the bank is responsible.
- Take it to AFCA. The Australian Financial Complaints Authority is free for consumers and small businesses. It decides what is fair in all the circumstances, taking into account the law, industry codes and good industry practice. It is not limited to strict legal liability, which is why it is often the best forum for scam losses.
- Consider the courts. For larger losses, or where AFCA has no jurisdiction, a court claim may be the way forward.
What AFCA Can and Can’t Do
AFCA can only deal with complaints about its members. Banks, many payment providers and a growing number of other firms are members. A fake offshore trading platform is not.
Compensation caps and time limits apply. Generally you need to lodge within six years of becoming aware of the loss, or within two years of the firm’s final response to your complaint, whichever comes first. AFCA has also historically had limited ability to look at what the receiving bank did, which has frustrated many victims.
Trading Platforms and Crypto Exchanges
Not all platforms are the same, and the legal position differs a lot.
- A fake platform. There is usually no licence, no local presence and no AFCA membership. The realistic targets are often the businesses that moved the money, rather than the platform itself.
- A legitimate Australian exchange. You may have bought crypto there and sent it on to a scammer. Exchanges must be registered with AUSTRAC and have anti-money laundering controls. If an exchange ignored obvious red flags or its own procedures, or misled you about what it was offering, a claim may be open.
- A licensed or regulated provider. Misleading or deceptive conduct claims under the Corporations Act, the ASIC Act and the Australian Consumer Law can be available where the provider got it wrong.
The law here is changing. The Corporations Amendment (Digital Assets Framework) Act 2026 passed Parliament in April 2026 and commences on 9 April 2027. From then, platforms that hold crypto for customers will need an Australian financial services licence, which brings conduct and disclosure obligations. Until then, the position depends heavily on what the product actually is. See our cryptocurrency legal advice page for more on how these regulatory changes work.
Before you ever deal with a platform, check whether it is registered with AUSTRAC, whether it holds an AFSL and whether it is on ASIC’s investor alert list.
Remittance Service Providers
Scammers love remittance providers because they move money fast and across borders. Legitimate remitters must be registered with AUSTRAC, know their customers and report suspicious activity. The AML/CTF reforms that started on 31 March 2026 added a “travel rule”, which requires information to travel with transfers.
If a remitter was unregistered, ignored obvious warning signs or did not follow its own processes, there may be a claim. AML/CTF laws are mostly enforced by AUSTRAC rather than by victims. Even so, a breach can help show what a reasonable provider should have done. Whether you have a claim will depend on what the provider actually knew and when.
The Scams Prevention Framework: What It Changes
The Scams Prevention Framework is a major new law. In May 2026 banks, telcos and certain digital platforms were designated as the first regulated sectors. Those businesses must be AFCA members from 1 September 2026, and AFCA will be the single complaints body for scam disputes against them. Penalties for serious failures can reach $50 million. See ASIC’s Scams Prevention Framework page for the official overview.
The timing matters. On current guidance, most obligations apply from 31 March 2027 and AFCA will handle eligible complaints about matters from that date. That makes it a strong development for the future and very little help if your scam has already happened. Crypto exchanges have not been designated yet, although they may be added later.
Going to Court: Freezing Orders, Tracing and the Honest Maths
Court action can do things AFCA cannot. Depending on the facts, it can include:
- Freezing orders to stop funds in an account being dissipated.
- Court-ordered disclosure to find out who is really behind an account or wallet.
- Tracing money through bank accounts, exchanges and wallets.
- Claims for misleading conduct, breach of duty and equitable wrongs against those who handled or received the money.
Litigation costs real money and a judgment is only worth something if the defendant has assets within reach. A claim against an anonymous offshore operator can burn through your budget fast. The cases that work best have an identifiable Australian defendant, solid evidence and a loss big enough to justify the cost. I will tell you upfront if I think the numbers do not stack up.
Your First 48 Hours
- Stop sending money. Scammers often come back with “release fees” or “taxes” to unlock your funds.
- Call your bank’s fraud team immediately. Ask for a recall or hold, and note the time, the person and the reference number.
- Tell the exchange or remitter. Ask them to freeze or flag related accounts.
- Preserve evidence. Screenshots, chat logs, emails, website addresses, wallet addresses, transaction hashes and bank statements. Do not delete anything.
- Report it. Use ReportCyber and Scamwatch. The report number helps with your bank complaint.
- Secure your accounts. Change passwords, enable multi-factor authentication and check for remote access software on your devices.
- Write a timeline. Dates, amounts, who you paid and what each party told you. Memory fades quickly.
If the experience has shaken you, IDCARE offers free support to scam and identity theft victims.
Beware of “Recovery” Scams
Once you are on a scammer’s list, you are likely to be targeted again. Fake “recovery” firms, sometimes posing as lawyers, regulators or blockchain investigators, promise to retrieve your crypto for an upfront fee. Nobody can guarantee recovery of stolen crypto. Be very wary of anyone who contacts you first, asks for payment in crypto or wants remote access to your computer. A real lawyer will explain your options and the risks, and will never promise an outcome.
Frequently Asked Questions
Can I get my money back from a crypto scam in Australia?
Sometimes. Recovery is most realistic when the money has not left the banking system, or when a bank, exchange or remittance provider failed in its own obligations. Speed matters. Once crypto reaches a scammer’s wallet it is very hard to retrieve, so the legal focus is usually on the businesses that handled your money along the way.
Can I sue my bank for a scam payment?
You can, but most people start with a complaint to the bank and then AFCA, which is free and decides what is fair in all the circumstances. A court claim tends to make sense for larger losses where the bank ignored clear red flags or its own processes. An authorised payment makes the case harder, but not hopeless.
Will AFCA take a crypto scam complaint?
AFCA can only deal with complaints about its member financial firms, such as banks and some payment providers. It generally cannot act against a scammer or a platform that is not a member. If your bank or another member firm handled the payments, you may have a complaint. Time limits apply.
Can I take action against a crypto exchange?
Possibly. If the exchange operates in Australia it has AUSTRAC and licensing obligations, and a claim may be open if it misled you or ignored obvious red flags. A fake or offshore platform is much harder to pursue, although freezing orders and court-ordered disclosure can sometimes help identify who is behind it.
What if my bank refuses to refund a scam payment?
Ask for the decision in writing and lodge a formal complaint through the bank’s dispute process. If you are unhappy with the response, or hear nothing within about 30 days, take it to AFCA. A refusal from the bank is rarely the final word. Keep all your evidence and watch the time limits.
Is a remittance provider responsible if I was scammed?
It depends on the facts. Remittance providers must be registered with AUSTRAC and run anti-money laundering controls. If a provider was unregistered or ignored obvious warning signs, there may be a claim, through AFCA if it is a member or through the courts. Many cases turn on what the provider actually knew.
What is the Scams Prevention Framework?
It is a new Australian law requiring banks, telcos and certain digital platforms to take reasonable steps to prevent, detect, disrupt, respond to and report scams, with AFCA handling consumer complaints. On current guidance most obligations apply from 31 March 2027, so it is unlikely to help with a scam that has already happened.
How long do I have to make a complaint or claim?
For AFCA, generally the earlier of six years from when you became aware of the loss and two years from the firm’s final response to your complaint. Court limitation periods depend on the type of claim, and evidence goes stale fast. Do not wait.
The Bottom Line
Being scammed does not mean you are out of options. The most valuable question is often not “where did the scammer go?” but “who else handled my money, and did they do their job?” Banks, exchanges and remitters all carry real obligations, and AFCA and the courts exist to hold them to account where they fall short.
The catch is time. Evidence disappears, accounts get emptied and complaint deadlines keep running. The sooner someone looks at your situation, the more options you will have.
Book a Time With Me
If you have lost money to a crypto scam and a bank, platform or remittance provider was involved, I would like to hear about it. Book a time with me, Ben Waldeck, or use the contact form on this page. Tell me when the payments were made, the amounts and the names of the banks or platforms involved. I will give you a clear view of whether there is a viable claim, which forum makes sense and what it is likely to cost.
This article is general information only and is not legal advice. Your situation depends on its own facts.