The Australian Securities and Investments Commission (ASIC) revealed that it has taken down more than 7,300 phishing and investment scam websites that were attempting to swindle investors. Since July 2023, actions against fake investment platforms have surged, with over 5,530 sites blocked, compared to 1,065 phishing scam hyperlinks and 615 cryptocurrency investment scams.
Interestingly, the number of websites blocked by the regulator has dropped dramatically since March 2024, a month when it blocked 734 websites. In April 2024, the regulator blocked 612 websites, which decreased to only 62 in July.
Regulator Is Working with a Third-Party Company
Highlighting the blocking process, the Australian regulator explained that it flags suspicious websites and refers them to a third-party company specializing in cybercrime detection and disruption.
“Once evidence of malicious activity is confirmed, the takedown process begins, including identifying relevant parties who can help to take the attack offline,” the regulator noted, detailing the process. However, it did not name the third-party company it has been working with.
Although ASIC blocks fraudulent and phishing websites, it does not publish their names, a practice regularly followed by top European regulators. However, none of the other regulators, except the one in Italy, can block flagged websites.
Priority to Fight Frauds and Scams
ASIC, which oversees the retail financial sector in the country, implemented a “scam website takedown capability” last year, under which it is taking down suspicious websites. It focuses on three types of websites: fake investment platforms, crypto-asset scam websites, and imposter scam websites, all of which are very difficult to detect unless some victims come forward.
The regulator strengthened its focus in this area after Australians lost AU$1.3 billion to investment scams in 2023, down from AU$1.5 billion in 2022.
Interestingly, a survey conducted by Finance Magnates and FXStreet found that clones of brokers are the biggest threat to victims compared to other scams.
“Australians are still losing billions of dollars each year to scams,” ASIC’s Deputy Chair Sarah Court stated. “Scammers are criminals targeting the hip pockets of hard-working Australians—they don’t discriminate, and they use sophisticated techniques to steal information and money.”
“The scams landscape is rapidly evolving. Innovative technological developments may improve how we live and work,” said the Deputy Chair. “However, they also provide new opportunities for scammers to exploit… Scammers will continue to adapt and find new ways to lure consumers, and ASIC remains proactive in detecting and disrupting investment scams.”
