ASIC is ramping up efforts to combat investment scams by extending its takedown capability to social media advertisements. This move aims to further protect Australians from deceptive online schemes.
According to ASIC’s latest enforcement update, over 14,000 investment scam and phishing websites have been taken down since the agency’s initiative started two years ago. The average is around 130 malicious sites removed each week.
The agency has also identified five major trends in online investment scams:
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AI washing: Scammers claim that their fake trading bots use AI to provide unrealistic returns.
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Scam website templates: Con artists create convincing websites using pre-designed templates and fake documents.
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Third-party exploitation: Scammers incorporate legitimate-looking content, like live trading charts, to lend authenticity to their sites.
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Fake news: Scammers generate false articles featuring celebrities to lure victims.
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Cloaking: Scammers alter website content based on users’ locations and devices to avoid detection.
ASIC Deputy Chair Sarah Court highlighted the importance of this expansion. She stated, “Expanding our investment scam takedown capability to social media ads will help safeguard Australian consumers.” Court emphasised that traditional methods alone cannot sufficiently address the problem of online scams.
Investment scams remain the most significant threat to Australians, with losses totalling $945 million in 2024. Despite a 25.9% drop in overall scam losses from the previous year, the battle against evolving tactics used by scammers continues.
ASIC advises consumers to be vigilant and recognise the signs of scams. They encourage Australians to:
- Stop: Think twice before trusting testimonials or high-pressure sales tactics.
- Check: Confirm if the company is licensed by ASIC. Look for alerts on scam websites.
- Protect: Be aware of what to do if a scam is encountered.
For further information, Australians can visit the Moneysmart website to learn how to identify and report investment scams.
