ASIC shuts down over 10,000 investment scam sites in major operation
Financial scams face tougher regulations in Australia
The Australian Securities and Investments Commission (ASIC) has intensified its fight against online investment fraud, successfully shutting down over 10,000 fraudulent websites and advertisements.
This large-scale operation is part of ASIC’s broader strategy to combat financial fraud and protect Australian investors from sophisticated cybercriminals.
Massive scam takedown
According to ASIC’s latest enforcement and regulatory report, the agency has removed 10,240 scam-related websites, including:
7,227 fake investment platforms
1,564 phishing links
1,257 cryptocurrency investment scams
ASIC Deputy Chair Sarah Court emphasized the urgency of tackling online scams, revealing that since 2023, the agency has been shutting down an average of 130 fraudulent investment websites every week.
“Scammers are using increasingly sophisticated technology to steal money from hardworking Australians through investment fraud schemes that can appear shockingly legitimate,” Court stated. “This new data demonstrates that ASIC is making Australia safer by stopping these scams before they reach Australians.”
ASIC has also initiated legal proceedings against HSBC Australia, alleging that the bank failed to adequately protect customers who lost millions of dollars due to fraudulent schemes. This action follows an ASIC report that exposed serious weaknesses in anti-fraud systems across 15 banks, excluding the country’s four largest financial institutions.
Strengthened enforcement measures
In the last six months of 2024, ASIC significantly ramped up its enforcement efforts, reporting:
- A 31% increase in new investigations, totaling 109 cases
- 15 new legal proceedings against financial institutions and businesses
- 376 market inspections to identify regulatory non-compliance
- $46.6 million in civil penalties and 13 criminal convictions
ASIC Chair Joe Longo attributed these successes to the agency’s organizational restructuring and improved intelligence-processing system.
“We anticipate that the increased number of investigations we have launched will lead to significant compliance, enforcement, and consumer protection outcomes in 2025,” Longo noted.
ASIC has also placed banks, insurance companies, and superannuation funds on notice due to identified inconsistencies in their fraud prevention systems and customer protection measures.
ASIC’s 2025 priorities: consumer protection and cost-of-living challenges
Looking ahead to 2025, ASIC reaffirmed its commitment to consumer protection, particularly amid rising cost-of-living pressures. The regulator aims to strengthen fraud prevention efforts and ensure financial institutions are held accountable for customer security.
“By utilizing our full range of regulatory tools, we have focused on landmark cases and compliance measures that deliver financial outcomes and protect consumers and investors,” Longo concluded.
As technology evolves, financial fraud is becoming increasingly sophisticated. However, ASIC’s decisive actions send a strong message that financial crimes will not go unchecked, safeguarding Australian investors from digital fraud threats.
Previously, ASIC proposed additional liability reduction measures aimed at easing regulatory burdens on Australian financial services and credit licensees.
