The Australian Securities and Investments Commission (ASIC) successfully closed down over 600 cryptocurrency scam websites within the past year.
In a statement released on August 19, ASIC revealed that since July 2023, they have dealt with 615 cases of crypto investment fraud. Additionally, ASIC has shut down 5,530 fake investment platforms and 1,065 malicious phishing links.
ASIC reports that scammers have been exploiting digital platforms, including social media, to attract unsuspecting victims to fraudulent websites.
ASIC Deputy Chair Sarah Court explained that an average of 20 investment scam websites are closed every day. These types of scams remain the leading cause of financial losses suffered by Australians, with total losses reaching USD 1.3 billion throughout 2023.
Rise in Deepfake-Driven Scams
In addition to investment scams leveraging digital platforms, Court also highlighted a significant rise in fake news articles and deepfake videos featuring public figures seemingly endorsing fake online trading platforms.
This type of scam makes up the majority of the sites that ASIC has taken down, where scammers exploit the images of famous personalities to attract victims.
For instance, ASIC shut down the website Quantum AI, a fake investment platform that claimed to use AI and quantum computing technology to generate high profits.
The site featured fake endorsements from celebrities like Chris Hemsworth and Elon Musk, promising unrealistic returns with minimal initial investment.
Furthermore, ASIC successfully shut down online crypto investment scam platforms like Dexa Trade Market, which falsely claimed to be internationally regulated, with billions in trading volume and millions of investors.
Collaboration with Third Parties to Combat Scams
ASIC’s ability to shut down these fraudulent investment websites is part of a larger initiative by the Australian government to combat scams and protect citizens from financial losses.
This process involves redirecting suspicious websites to third-party companies with expertise in detecting cybercrime. Once malicious activity is confirmed, the site is shut down.
ASIC closely collaborates with the Australian National Anti-Scam Centre (NASC), which focuses on investment scam schemes. This cooperation has been credited with reducing total losses from USD 1.5 billion in 2022 to USD 1.3 billion in 2023.
Additionally, ASIC regularly issues warnings about investment scams through their consumer website, Moneysmart, which provides detailed information on how various investment scams operate, including fake bond scams, pension scams, and crypto scams.
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