ASIC snuffs out 10,000 investment scam sites | Australian Markets

The Australian Securities and Funding Fee (ASIC) is gearing for more decisive motion towards investment scammers this yr, with the company reporting the profitable takedown of more than 10,000 investment rip-off web sites and online advertisers since mid-2023.

On average, ASIC’s anti-scams actions have resulted within the shutdown of 130 rip-off websites per week since July 2023, when the Nationwide Anti-Rip-off Centre shaped the Funding Scams Fusion Cell to assist the financial regulator’s rip-off takedown efforts.

Of those blocked websites, more than 7,200 have been recognized as pretend investment platform scams, 1,500 phishing rip-off hyperlinks, and 1,200 cryptocurrency investment scams.

Among the many more high-profile takedowns of 2024 included Quantum AI, which used ‘deepfaked’ celeb endorsements to advertise its doubtful investment strategies, together with the use of artificial intelligence (AI) and quantum computing applied sciences, to attain high returns.

The figures have been reported in ASIC’s Enforcement and Regulatory Replace report, with the financial companies regulator noting its removing of more than 6,200 investment rip-off web sites and online commercials over the 2024 calendar yr. Over this time, the Funding Scams Fusion Cell launched an auto-referral system, which instantly refers investment rip-off web sites reported to Scamwatch to ASIC for takedown.

That is barely down on the determine achieved within the yr subsequent to the launch of the fusion cell, the place ASIC reported the closure of more than 7,300 investment rip-off web sites.

ASIC deputy chair Sarah Courtroom warned of scammers “using increasingly sophisticated technology” to create scams that “can look shockingly legitimate”.

“This new data demonstrates that ASIC is making Australia safer by stamping out these scams before they reach Australians,” she mentioned.

Courtroom added: “ASIC will continue to protect Australians from scams by removing them before they reach consumers and holding financial institutions accountable for their scam detection and response practices.”

Australians misplaced more than $192 million to investment scams final yr, in line with figures from the ACCC’s ScamWatch service, making up more than 60% of all rip-off losses reported to the company. Nonetheless, with many situations going unreported, the ACCC determine is nearly actually decrease than the whole greenback worth misplaced by Australians to investment scams.

As nicely, the financial companies regulator famous its profitable litigations over the six months to December 2024, securing $46.6 million in civil penalties and 13 felony convictions.

Additional, more than 100 investigations have been commenced over this period, up 31% from the prior corresponding period; ASIC additionally reported an 8% increase in accomplished surveillances, totalling 376, over these six months.

ASIC chair Joe Longo additionally famous the “positive impacts” achieved by means of ASIC’s latest organisational redesign and refreshed government group, resulting in an increase in investigative exercise.

“The changes we have made mean ASIC is able to more efficiently process intelligence, leading to earlier commencement of investigations and surveillances,” Longo mentioned.

“We anticipate the increased number of investigations we have commenced will flow through to significant compliance, enforcement and consumer outcomes in the year ahead.”

ASIC revealed it commenced court docket motion towards HSBC Australia in December, following allegations the bank did not adequately defend clients scammed out of tens of millions of {dollars}.