The Australian Securities and Investments Commission (ASIC) announced it is intensifying its efforts to combat online investment scams, revealing that over 10,000 fraudulent websites and advertisements have been shut down. This crackdown includes a staggering 1,257 cryptocurrency investment scams, highlighting the growing concern over scams targeting Australians in the digital currency space.
According to ASIC’s latest Enforcement and Regulatory Update, the agency has removed a total of 10,240 deceptive sites, which also feature 7,227 fake investment platforms and 1,564 phishing links. This aggressive action comes as ASIC reports an average of 130 investment scam websites shut down each week since establishing its capability in 2023.
ASIC Deputy Chair Sarah Court emphasized the sophistication of these scams, stating, “Scammers are using increasingly sophisticated technology to steal money from hard-working Australians with investment scams that can look shockingly legitimate.” She noted that ASIC’s proactive measures are crucial in preventing these scams from reaching consumers.
In addition to its efforts against scams, ASIC has initiated court action against HSBC Australia, alleging the bank failed to adequately protect customers who lost millions to scams. This move follows reports assessing the anti-scam practices of 15 banks, which indicated significant room for improvement in their responses.
The report also highlights a 31% increase in new investigations by ASIC in the last six months of 2024, with 109 new cases commenced and 15 court actions initiated. ASIC has successfully secured $46.6 million in civil penalties and 13 criminal convictions, showcasing the effectiveness of its revamped enforcement strategy.
ASIC Chair Joe Longo underscored the positive impacts of recent organizational changes, which have improved the agency’s efficiency in processing intelligence and commencing investigations. He stated, “We anticipate the increased number of investigations will flow through to significant compliance, enforcement, and consumer outcomes in the year ahead.”
The ASIC added that its commitment to protecting consumers extends to various sectors, including banking and insurance, as they address inconsistencies and complacency observed in these industries. The agency’s 2025 enforcement priorities will focus on preventing financial harm, particularly in light of the increased cost-of-living pressures faced by consumers.
With the rise in cryptocurrency-related scams, ASIC’s targeted enforcement actions aim to safeguard Australians from financial losses and promote greater accountability among financial institutions in their scam detection and response practices.
Shogun Lin
