Australia’s ASIC Takes Down 7.3K Scam Sites in Fraud Crackdown

• ASIC announced its removal of 7.3K scam websites since its inception in July 2023.
• The scams collectively amounted to $1.3B in losses last year, majorly because of false ads.
• Scam tactics have shifted focus on centralized exchanges nowadays according to Chainalysis.

Australia’s financial markets regulator (ASIC) has launched a major effort to combat online investment fraud. ASIC has announced the removal of more than 7,300 scam websites in its first year of operation. 

The Australian Securities and Investments Commission (ASIC) revealed on August 19, 2024, that it has successfully dismantled 5,530 fake investment platforms, 1,065 phishing scam hyperlinks, and 615 cryptocurrency investment scams since launching its initiative in July 2023.

These scams collectively resulted in an estimated $1.3 billion in losses last year, with offenders creating fake news articles and deepfake videos featuring public figures. High-profile names such as David Koch, Chris Hemsworth, and Nicole Kidman were among those falsely used in scam advertisements.

Further, the regulatory body has collaborated with a third-party cybercrime detection firm to shut down these malicious websites. On average, ASIC manages to take down about 20 scam sites daily to leverage rapid response strategies. Notably, in one instance, ASIC responded to a consumer report within an hour, leading to the immediate takedown of a fraudulent website.

ASIC’s Ongoing Battle Against Evolving Scams

Sarah Court, ASIC Deputy Chair acknowledged that the fight against scammers is like a never-ending battle.

Court mentioned:

“Scammers are criminals targeting the hip pockets of hard-working Australians. They use sophisticated techniques to steal information and money”.

The rise in sophisticated social engineering tactics has made it increasingly challenging for average consumers to detect fraud.

Moreover, scam tactics are shifting, with crypto criminals targeting centralized exchanges, according to Chainalysis report. This represents a notable change from previous years, where decentralized platforms were the primary focus.

ASIC continues to advise consumers to exercise caution with social media links promoting online trading and cryptocurrency investments. ASIC is committed to disrupting fraud and protecting Australians, continually adapting to outrun evolving scams.

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