A grandfather who fell victim to a Bitcoin scam is warning others to be extra cautious after he lost thousands of dollars.
Justin Rupert, from Perth, decided he'd jump on board the bitcoin bandwagon after the value of the digital currency skyrocketed this year.
But after responding to an online ad claiming to sell the currency, he soon found out that it was all a scam.
An investigation found customer reviews of the Bitcoin Investor Club were by paid actors.
Altogether Rupert lost $5000.
"He called from an Australian phone number so I thought it was legit," Rupert told 7 News.
"He started asking for more and for me to get a loan and I thought: 'this is suss'."
Despite a recent drop in value for the currency, authorities are preparing for a spike in fake traders.
"Because it's becoming such an interesting thing and it looks like you can make a whole lot of money there is potential for people to fall victim," Consumer Fraud Liason Officer Felicia Malet said.
Experts advise potential investors to check the email address which is often a give away.
They also suggest to check for reviews of the seller and only make payments via credit card or Paypal.