ASIC Reports 20% Uptick in Investment Scams During COVID-19
- The regulator received 20% more reports of misconduct from March to May of 2020 year-on-year.
The Australian Securities and Investments Commission (ASIC) announced this Wednesday that it has seen an uptick in the number of investment scam reports from consumers and investors within Australia during the coronavirus pandemic.
In particular, the Australian regulator said that the number of reports of misconduct it has received from March to May this year has increased by 20 per cent when measured against the same period of the previous year.
ASIC sees rise in crypto scams
Commenting on the rising trend, ASIC Executive Director for Assessment and Intelligence Warren Day said in the statement that economic uncertainty due to COVID-19 has created a perfect storm.
Warren Day, Executive Director for Assessment and Intelligence
Source: LinkedIn
“Australians are at risk of being scammed and losing money, and scammers are using age-old tactics in new and sophisticated ways to target people,” Day outlined. “We are seeing a spike in reports of scams related to fake crypto-assets (or Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term), term deposits, investments and scams that start via romance sites.”
“ASIC is particularly concerned about the risk to consumers and investors losing money when buying into fake crypto-assets. Most crypto-asset investment opportunities reported to ASIC appear to be outright scams and there is no actual underlying investment.”
According to the Australian watchdog, scammers often:
- present a range of investment offers – from modest returns to high returns – that sound safer than they are;
- make persistent requests to continue investing despite no evidence of actual returns on initial investments;
- display fake endorsements from celebrities or government agencies, including ASIC;
- request money be paid to a person or company into multiple or constantly changing bank accounts;
- lure someone via a romance site and direct them to send money or invest in crypto-assets or Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term trading.
The report from ASIC follows on the heels of the Australian Competition and Consumer Commission (ACCC) publishing a report on Monday that Aussies lost more than AU$634 million (US$435.2 million) to scams during the year - AU$126 million of which was lost to investment scams.
The Australian Securities and Investments Commission (ASIC) announced this Wednesday that it has seen an uptick in the number of investment scam reports from consumers and investors within Australia during the coronavirus pandemic.
In particular, the Australian regulator said that the number of reports of misconduct it has received from March to May this year has increased by 20 per cent when measured against the same period of the previous year.
ASIC sees rise in crypto scams
Commenting on the rising trend, ASIC Executive Director for Assessment and Intelligence Warren Day said in the statement that economic uncertainty due to COVID-19 has created a perfect storm.
Warren Day, Executive Director for Assessment and Intelligence
Source: LinkedIn
“Australians are at risk of being scammed and losing money, and scammers are using age-old tactics in new and sophisticated ways to target people,” Day outlined. “We are seeing a spike in reports of scams related to fake crypto-assets (or Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term), term deposits, investments and scams that start via romance sites.”
“ASIC is particularly concerned about the risk to consumers and investors losing money when buying into fake crypto-assets. Most crypto-asset investment opportunities reported to ASIC appear to be outright scams and there is no actual underlying investment.”
According to the Australian watchdog, scammers often:
- present a range of investment offers – from modest returns to high returns – that sound safer than they are;
- make persistent requests to continue investing despite no evidence of actual returns on initial investments;
- display fake endorsements from celebrities or government agencies, including ASIC;
- request money be paid to a person or company into multiple or constantly changing bank accounts;
- lure someone via a romance site and direct them to send money or invest in crypto-assets or Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term trading.
The report from ASIC follows on the heels of the Australian Competition and Consumer Commission (ACCC) publishing a report on Monday that Aussies lost more than AU$634 million (US$435.2 million) to scams during the year - AU$126 million of which was lost to investment scams.