In an age where technology is advancing at a breakneck pace, it’s not just the gadgets in our lives that are getting smarter—unfortunately, so are the scammers. The Australian Securities and Investments Commission (ASIC) has issued a stark warning: scammers have upped their game, crafting schemes so convincing they could fool even the most discerning investor.
The rise of these scams is alarming, with Australians bombarded by fraudulent investment opportunities that mimic legitimate offerings. But fear not, because ASIC is on the case, actively dismantling these digital deceptions to protect your hard-earned cash.
ASIC’s vigilant efforts have led to the shutdown of over 10,240 scam websites in a mere two years, a testament to the scale of this digital onslaught. Since establishing its dedicated capability in 2023, ASIC has been working tirelessly, taking down an average of 130 investment scam websites weekly.
The sophistication of these scams is nothing short of shocking. They employ advanced technology to create investment scams that look incredibly legitimate, making it difficult for individuals to distinguish between what’s real and what’s fake.
The most prevalent scams involve fake investment platforms, with ASIC knocking out over 7,000 of these. Additionally, 1,500 phishing links and 1,200 cryptocurrency scams have been eradicated.
Examples of these scams include Abex Markets, a bogus investment platform falsely claiming to offer investment opportunities in NFTs and Forex. Another, Dewolf Capital, lured investors with the promise of sky-high returns ranging from 250 to 500 per cent through crypto trading products.
ASIC’s crackdown isn’t just about taking down websites; it’s about bringing the full weight of the law to bear on these scammers.
In the last six months of 2024 alone, ASIC ramped up its investigations by 31 per cent, initiating 109 new investigations, starting 15 new court actions, and completing 376 surveillances.
The results speak for themselves: ASIC has secured $46.6 million in civil penalties and 13 criminal convictions.
So, how can you protect yourself from these cunning scammers? Here are some tips from ASIC and Scamwatch to help you spot and avoid investment scams:
• Be wary of unexpected investment offers, especially if they seem too good to be true.
• Avoid taking investment advice from strangers on social media.
• Verify the credentials of anyone offering you investment opportunities by checking if they are licensed on the ASIC website.
• Consult the Moneysmart investor alert list for companies and websites that are known to be untrustworthy.
• Ensure that the business details provided match the company’s official website.
ASIC is committed to safeguarding Australians from these scams by preemptively removing them and ‘holding financial institutions accountable’ for their scam detection and response practices.
As we navigate this digital minefield, it’s crucial to stay informed, vigilant, and proactive in protecting our finances.
Have you or someone you know encountered a scam that seemed almost too legitimate? Share your experiences in the comments below and help spread awareness in our YourLifeChoices community.
Also read: Woman loses $500k to scam—here’s how to avoid a similar fate
Too easy: if you didn’t sign up for it, ask for it, or don’t recognise it, it’s questionable. Always do your due diligence online and never trust someone on the telephone (and for goodness sake DO NOT rely on the caller to give you “their” callback details)!
Oh, also, get a life young people – there’s absolutely NO reason you need to be hooked up, dialled in, or whatever it’s called these days. Get some fresh air, connect with human beings (or dogs, I find dogs infinitely more enjoyable), but for goodness sake put away that damn electronic device for a few hours a day!
“sky-high returns ranging from 250 to 500 per cent through crypto trading products.” Really??
If it’s too good to be true, it’s too good to be true.