Cyber attackers repurpose legitimate cybersecurity software as a Trojan horse to steal cryptocurrency

Australian officials have sounded urgent alarms as cybercriminals manipulate the country’s official cybercrime reporting service to trick cryptocurrency owners into handing over their assets. The Australian Federal Police (AFP) and its Joint Policing Cybercrime Coordination Centre (JPC3)

the government’s ReportCyber website by pretending to be law enforcement, orchestrating an elaborate scam that takes advantage of people’s trust in official procedures.

This scheme operates in two phases. Initially, scammers

— such as emails and phone numbers — and use it to submit fake reports through the ReportCyber portal, which is intended for citizens to report cybercrimes. Soon after, victims are contacted by callers claiming to be AFP officers, who allege the victim’s information was found in a cryptocurrency data breach and provide a bogus reference number linked to the fraudulent ReportCyber entry . Since this reference number can appear on the official platform, it gives the scam an air of legitimacy, pushing victims to respond quickly. Next, another scammer, posing as a representative from a crypto exchange, urges the target to move their funds into a supposedly “safe” cold wallet. In at least one instance, a victim and ended the call before any money was lost.

AFP Detective Superintendent Marie Andersson

the system’s feature that lets third parties file reports for others. “Scammers confirm personal details in ways that seem legitimate and create urgency to pressure victims,” she said. The AFP also cautioned that similar scams have used fake caller IDs that mimic official numbers to further mislead people.

Authorities underline that genuine law enforcement will never ask for access to your crypto wallets, seed phrases, or banking information. The AFP urges Australians to hang up immediately if they receive a call about a ReportCyber case they did not initiate and to contact the official hotline at 1300 CYBER1. The JPC3 reaffirmed that ReportCyber is a secure platform for reporting cybercrime, but warned the public to be cautious of scams that exploit its credibility.

This alert comes as part of a wider crackdown on crypto-related scams. In October, Home Affairs Minister Tony Burke introduced new laws targeting crypto ATMs, calling them “high-risk products” often used for money laundering and exploitation. The Australian Securities and Investments Commission (ASIC) has also ramped up enforcement, shutting down more than 14,000 fraudulent websites since July 2023, with one in five linked to cryptocurrency scams.

The AFP’s warning underscores a rising wave of complex cybercrime, where criminals use regulatory systems to undermine public confidence. With Australia’s crypto sector growing, authorities are encouraging both individuals and organizations to strengthen their security and report any suspicious incidents without delay.