ASIC clamps down on fraudulent investment sites

ASIC clamps down on fraudulent investment sites | Insurance Business Australia

Cyber

ASIC clamps down on fraudulent investment sites

Surveillance and regulatory efforts bolstered

Cyber

By
Roxanne Libatique

The Australian Securities and Investments Commission (ASIC) has successfully dismantled approximately 3,500 fake investment platforms since the inception of its scam takedown initiative in July 2023.

This action is a key element of ASIC’s broader strategy aimed at safeguarding Australian consumers from the perils of online financial fraud.

ASIC’s actions against scam websites

Recent data showcased ASIC’s commitment to combating investment scams through enhanced monitoring and enforcement measures designed to protect consumers and ensure market integrity. This includes addressing issues related to misleading environmental claims, insurance sector malpractices, and ensuring regulatory compliance across the board.

“Cost-of-living issues mean more Australians are looking for ways to make ends meet, and scammers are only too happy to try and take advantage. That’s why ASIC is stopping investment scams at the source of their promotion, removing them from the internet before they can lure in unsuspecting consumers,” he said.

Longo highlighted the significant achievements of ASIC’s regulatory and enforcement division.

“In the half year to December 31, 2023, ASIC secured almost $60 million in civil penalties and nine criminal convictions. We launched 83 new investigations, commenced 19 new civil proceedings, criminally charged 19 individuals, and completed nearly 350 surveillances. ASIC is in courts and boardrooms across Australia almost every single day of the week,” he said.

Looking forward, ASIC is set to escalate its regulatory and surveillance endeavours, focusing on lenders’ adherence to hardship obligations, enhancing support for First Nations consumers in accessing affordable banking options, and scrutinising superannuation trustees’ delivery of critical member services, including the processing of death benefits claims.

“Australians can continue to expect significant regulatory and surveillance work from ASIC in the coming months,” Longo said. “We will continue to work to ensure the financial system works for all Australians.”

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