The Australian Securities and Investments Commission (ASIC) has reported the closure of 615 cryptocurrency investment scams in the first year of its initiative to combat fraudulent investment schemes. This effort is part of a broader crackdown that led to the dismantling of more than 7,300 scam websites, including 5,530 fake investment platforms and 1,065 phishing sites.
ASIC revealed that Australians lost approximately A$1.3 billion (around $870 million) to investment scams over the past year, making these scams a major source of financial loss for consumers. This alarming trend has driven the regulator to take urgent action to protect the public.
The scams targeted by ASIC typically involve fraudulent schemes that promise high returns on cryptocurrency investments but never actually invest the funds. Many of these scams also use phishing tactics to steal personal information from victims. The regulator pointed out that scammers are increasingly leveraging advanced technologies, including artificial intelligence (AI), to create more convincing and sophisticated fraudulent schemes.
Sarah Court, ASIC’s Deputy Chair, remarked, “While innovative technologies can improve our lives, they also provide new opportunities for scammers to exploit.” She stressed the importance of quickly shutting down malicious websites to prevent further harm to Australian consumers.
Among the entities shut down was Dexa Trade Markets, a company that falsely claimed to be internationally regulated and to manage billions in trading volume. ASIC intervened after receiving complaints from consumers who had fallen prey to the scam.
ASIC’s proactive measures include taking down an average of 20 scam websites per day, with the agency collaborating with a cybercrime detection company to speed up the process.
The surge in scams has also led to warnings about the use of deepfake technology, where scammers create fake videos and voices of public figures, such as Elon Musk, to promote fraudulent investment opportunities. These sophisticated tactics have made it increasingly difficult for individuals to distinguish between legitimate investments and scams.
ASIC’s ongoing efforts aim to protect consumers and uphold the integrity of Australia’s financial system.
