ASIC Takes Down Over 600 Crypto Scams in Year-Long Crackdown on Investment Fraud
The Australian Securities and Investments Commission (ASIC) has reported significant progress in its efforts to combat investment scams, with a particular focus on cryptocurrency-related fraud. In a statement released on August 19, 2024, ASIC revealed that it has coordinated the removal of more than 7,300 phishing and investment scam websites over the past year, including 615 cryptocurrency investment scams.
Since July 2023, ASIC’s takedown efforts have targeted 5,530 fake investment platform scams, 1,065 phishing scam hyperlinks, and the aforementioned crypto scams. This initiative is part of the regulator’s broader strategy to disrupt online investment scams that have resulted in substantial financial losses for Australian consumers.
Deputy Chair Sarah Court emphasized the evolving nature of the scam landscape, noting that innovative technologies, while beneficial, also provide new opportunities for scammers to exploit. “Australians are still losing billions of dollars each year to scams,” Court stated. “Scammers are criminals targeting the hip pockets of hard-working Australians – they don’t discriminate, and they use sophisticated techniques to steal information and money.”
ASIC highlighted the increasing use of artificial intelligence and deepfake technology in scams, making it more challenging for consumers to identify fraudulent schemes. The regulator cited examples of fake celebrity endorsements, including those of Chris Hemsworth and Elon Musk, being used to lure unsuspecting investors with promises of unrealistic returns.
One notable case involved the takedown of a suspicious crypto investment firm called Dexa Trade Markets, which falsely claimed to be internationally regulated and to have billions in trading volume. ASIC acted swiftly, removing the website within an hour of receiving a report from an Australian consumer.
The regulator’s efforts appear to be making an impact, with an average of 20 investment scam websites being taken down daily. However, ASIC warns that scammers continue to adapt their tactics, emphasizing the need for ongoing vigilance from consumers.
To combat these threats, ASIC advises consumers to be cautious of social media hyperlinks promoting online trading and cryptocurrency investments. The regulator encourages individuals to thoroughly research investment opportunities, check ASIC’s Moneysmart investor alert list, and verify the legitimacy of entities offering investments.
As part of its commitment to protecting Australian investors, ASIC continues to work closely with other government agencies and industry partners, including the National Anti-Scam Centre, to coordinate scam disruption strategies and share intelligence.
While the number of crypto-related scams has shown a decline since April 2024, ASIC remains proactive in its approach to detecting and disrupting investment scams, recognizing that the threat landscape continues to evolve rapidly in the digital age.
