ASIC Warns of Rising Crypto & Online Investment Scams Targeting Australians

Are you an Australian resident interested in cryptocurrency? Be warned! The Australian Securities and Investments Commission (ASIC) has issued a stark warning about the rise of online investment scams, particularly those involving digital currencies. Scammers are becoming increasingly sophisticated, and it’s crucial to stay informed to protect your hard-earned money.

ASIC Cracks Down on Online Investment Scams

ASIC is actively combating these scams, taking down malicious websites that target Australians. In a recent announcement, ASIC revealed its efforts to shut down these fraudulent platforms.

Key Statistics:

• Since July 2023, ASIC has removed over 5,530 fake investment platform scams.
• 1,065 phishing scam hyperlinks have been taken down.
• 615 cryptocurrency investment scams have been eliminated.
• Australians lost $1.3 billion to investment scams in 2023 alone.

How Scammers Operate

Scammers utilize various online platforms to lure victims, including:

• Social Media: Directing users to scam websites through enticing ads and posts.
• Fake News Articles: Promoting fraudulent news stories to build credibility.
• AI-Generated Content: Creating fake videos of famous people endorsing scams.

ASIC’s Deputy Chair, Sarah Court, on the Scam Epidemic

“Australians are still losing billions of dollars each year to scams. Scammers are criminals targeting the hip pockets of hard-working Australians – they don’t discriminate, and they use sophisticated techniques to steal information and money.

The scams landscape is rapidly evolving. Innovative technology developments may improve how we live and work, however they also provide new opportunities for scammers to exploit. Every day an average of 20 investment scam websites are taken down. The quick removal of malicious websites is an important step to stop criminal scammers from causing further harm to Australians.”

The Process of Taking Down Scam Websites

ASIC collaborates with a specialized cybercrime detection company. Suspected fraudulent websites are reported, investigated, and, if confirmed as scams, shut down.

These websites often impersonate legitimate entities, offering investment scams through fake trading platforms and cryptocurrency schemes.

Protect Yourself: Tips to Avoid Crypto and Online Investment Scams

Here are actionable steps you can take to protect yourself from falling victim to these scams:

• Be Skeptical of Social Media Ads: Don’t blindly trust investment opportunities promoted on social media.
• Verify Information: Double-check news articles and endorsements, especially those featuring celebrities.
• Research Platforms: Before investing, thoroughly research the platform and ensure it’s legitimate. Check for licenses and regulatory compliance.
• Be Wary of “Too Good to Be True” Returns: High returns with little to no risk are a major red flag.
• Seek Professional Advice: Consult with a licensed financial advisor before making any investment decisions.

Staying Vigilant in the Digital Age

The rise of online investment and crypto scams is a serious concern. By staying informed, being skeptical, and taking proactive steps to protect yourself, you can minimize your risk of becoming a victim. Remember to always verify information, research platforms, and seek professional advice before investing. The ASIC’s efforts to combat these scams are ongoing, but your vigilance is your best defense.