The Australian Securities and Investments Commission (ASIC) took down 6,900 investment scam and phishing websites in the year ended June 30, according to its annual report released today (Wednesday), as the regulator ramped up efforts to protect consumers from online fraud.
Australian Regulator Shuts 6,900 Sites
The takedowns included roughly 2,800 fake investment platforms, 2,400 cryptocurrency scams, 1,400 phishing links and 250 fraudulent online advertisements. ASIC added 1,035 warnings to its Investor Alert List and published consumer advisories about schemes targeting retirement savings.
Chairman Joe Longo said the agency's investments in digital capabilities had delivered results. Formal investigations jumped 50% from the prior year, while new civil enforcement proceedings increased nearly 20%. The regulator completed 829 targeted surveillances across financial services sectors.
"ASIC responds to emerging challenges in the broader financial ecosystem, from the advent of AI to the increasing dominance of private credit in our capital markets," Longo commented in a statement accompanying the report.
Courts Hand Down $120 Million in Penalties
The regulator secured $104.1 million in civil penalties through court proceedings, up from $90.8 million the previous year. Criminal prosecutions resulted in an additional $16.8 million in fines, a substantial increase from $936,000 in 2023-24. The agency launched 38 new civil cases during the fiscal year.
Nineteen defendants received criminal convictions, with 14 receiving custodial sentences. Six people were imprisoned. Courts imposed five non-custodial sentences. ASIC also issued 16 infringement notices totaling $5.6 million in penalties.
The agency prosecuted 235 individuals for strict liability offenses, resulting in $1.6 million in fines. Summary prosecutions rose almost 26% compared with the previous year.
Superannuation Funds Face Legal Action
ASIC took enforcement action against two major superannuation trustees over delayed death benefit claims. The regulator sued United Super, trustee of the Cbus fund, alleging more than 10,000 members waited over 90 days for claim processing. Some families waited longer than 12 months, according to court filings.
The agency filed separate proceedings against AustralianSuper, Australia's largest pension fund, over claims that took between four months and four years to process. ASIC alleged at least 6,699 claims were delayed between July 2019 and October 2024.
Banking Sector Under Scrutiny
ASIC filed its first court case alleging a bank failed to protect customers from scams. The December lawsuit against HSBC Bank Australia claims inadequate systems allowed about $23 million in customer losses from unauthorized transactions between January 2020 and August 2024. Nearly $16 million of those losses occurred in six months from October 2023 to March 2024.
The regulator reviewed anti-scam practices at 15 banks outside the four major institutions. The August report found scam detection and response measures "less mature than expected," with governance structures focused on fraud rather than scams. Customers bore 96% of total scam losses during the review period.
Related stories: ASIC Admits Its Own Rules Were Too Complex, Deletes 9,000 Pages of Red Tape
Operational Overhaul Delivers Results
The regulator processed 1,531 licensing and registration applications, approving 1,021 and refusing or receiving withdrawals on 360. ASIC canceled or suspended 215 Australian financial services licenses and 253 credit licenses during the year.
The agency restricted or banned 58 individuals or companies from providing financial services and removed 33 from the credit industry. Fourteen people were disqualified or removed from directing companies.
ASIC registered 333,188 new companies and 386,519 business names. The Moneysmart consumer education website attracted 11.7 million visitors, with 8.1 million using online financial tools.
The regulator operates under a cost-recovery model and collected $1.9 billion in fees, charges and supervisory levies on behalf of the Commonwealth during the fiscal year.
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