ASIC Intensifies Crackdown on Fraudulent Crypto Websites Amid Rising Scam Losses

• ASIC has removed over 5,500 scam websites and 615 crypto scams since July 2023, amid rising losses from fake investment platforms.
• Australia’s 2023 scam losses hit $1.3B, with fraudulent trading platforms exploiting social media and deepfake videos for promotion.
• Over half of crypto ads on Meta’s platform are deceptive, prompting Australia’s competition watchdog to investigate 234 suspicious ads.

Australia’s financial regulator, ASIC, has increased its efforts to combat the rising quantity of bogus investment websites and other false cryptocurrency trading platforms. Since July 2023, ASIC has removed over 5,500 fake investment websites, over 1,000 phishing links, and 615 cryptocurrency scam websites. 

These actions are a response to the rising number of scams that target Australians and are commonly shared on social media in fake endorsements from local and celebrity public figures.

The Impact of Fraudulent Investment Platforms

These frauds have a startling effect. Australians are expected to have lost $1.3 billion in 2023 alone, mostly as a result of dishonest investment trading platforms. These platforms were frequently advertised using deepfake videos and misleading news with well-known public figures. The removal of these fake websites by ASIC is an important step in shielding Australians from additional financial harm.

Furthermore, the regulator has been working to address more general problems in the online advertising environment. Last week, Australia’s competition authority discovered that over half of the Bitcoin ads on Meta’s platform are deceptive or break the terms of the business.

Notably, these commercials alter the appearances of celebrities like Nicole Kidman, Chris Hemsworth, and Russell Crowe, making the fight against online fraud considerably more challenging.

The problem’s scope is worrisome. Over 3,400 allegations of investment fraud totalling damages above $78 million were received by Australia in 2024. In addition, 234 misleading advertisements that might be in violation of Meta’s regulations are the subject of an investigation by the competition watchdog, and more could surface as legal actions develop.

Coordinated Efforts and Continued Challenges

Notably, despite an increase in complaints of scams, actions taken to stop these kinds of operations are having an impact. Despite an 18.5% increase in the number of scams recorded, the National Anti-Scam Centre reported a 13.1% fall in scam-related losses in 2023, amounting to $2.77 billion.

The deputy chair of ASIC, Sarah Court, stressed the importance of being alert. She cautions the public to proceed with caution while viewing investment advertisements on social media, particularly those that offer substantial returns.

The Court further emphasizes how effective it has been to stop these scams through coordinated efforts across industries like banking and telecommunications. But for Australians, the continuous fight against internet fraud continues to be a major concern.