In a relentless battle against financial fraud, Australia’s financial watchdog, the Australian Securities and Investments Commission (ASIC), has intensified its crackdown on scam websites, particularly those peddling fake investment platforms and cryptocurrencies.
Since July 2023, ASIC has played a pivotal role in removing over 5,500 fraudulent investment sites, more than 1,000 phishing links, and an alarming 615 crypto scam websites. This aggressive stance comes in response to a staggering $1.3 billion in losses attributed to scams last year, primarily through counterfeit investment trading platforms.
These fraudulent schemes have become increasingly sophisticated, often employing deepfake technology to create convincing endorsements from prominent public figures. Social media has also been a breeding ground for these scams, with false celebrity endorsements proliferating across platforms.
“Australians are still losing billions of dollars each year to scams,” warned ASIC deputy chair Sarah Court. “Scammers are relentless in their pursuit of unsuspecting victims, employing advanced tactics to steal hard-earned money.” Court emphasized the urgent need for continued action to protect Australians from falling prey to these financial predators.
The alarming scale of the problem is underscored by the fact that ASIC is currently shutting down an average of 20 scam investment websites daily.
Separately, Australian law enforcement has uncovered over 2,000 hacked crypto wallets, further highlighting the pervasive nature of crypto-related scams.
The issue of deceptive cryptocurrency advertising has also come under scrutiny. Australia’s competition watchdog recently revealed that more than half of crypto ads on Meta’s platform either mislead consumers or contravene platform advertising policies. These ads frequently misuse the images of both Australian and international celebrities, creating a false sense of legitimacy.
With over 3,400 investment scam reports and losses exceeding $78 million in 2024 alone, the authorities face a formidable challenge. The competition watchdog has identified approximately 600 potentially problematic crypto ads on Meta but is currently focusing on 234 of the most egregious cases.
Also Read: Australian Firm NYBlue Secures Over One Million Carats of Blue Zircon, Launches RWA Token
As investigations deepen, it is anticipated that additional instances of misleading crypto advertising will be uncovered.
These revelations underscore the critical importance of consumer vigilance. Investors are urged to exercise extreme caution when encountering online investment opportunities, particularly those promoted through social media and featuring celebrity endorsements.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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