The Australian Securities and Investments Commission (ASIC) has issued an urgent warning about scammers impersonating the regulator through fraudulent text messages, aiming to steal personal and financial information from unsuspecting victims.

ASIC Warns of Text Message Scams Using Fraudulent Method

The scammers are using “alpha tags”—alphanumeric sender identification labels that display “ASIC” instead of a phone number as the message sender, creating an illusion of legitimacy that has already targeted numerous Australians.

“ASIC does not communicate using text messages for any official business,” the regulator emphasized in its warning. This includes requests for personal details, business name renewals, confirmation of misconduct reports, investment assistance, or fee payments.

The deceptive practice comes amid a rising wave of government impersonation scams that have become increasingly sophisticated in recent months. Alpha tags, while legitimate tools for organizations to identify themselves in text communications, provide scammers with a powerful method to build false trust with potential victims.

When people see “ASIC” as the sender rather than an unknown number, they're more likely to engage with the message. However, this false sense of security is exactly what scammers are banking on.

Each week ASIC blocks approximately 130 suspicious websites, having removed over 10,000 in total. Scammers are therefore trying other tactics, directly impersonating trusted public institutions.

Unveiling Smishing

The practice in question is known as “smishing,” a term for SMS phishing. This issue is especially widespread in the cryptocurrency sector, where users of major exchanges receive fake messages urging them to take action on their accounts. Interestingly, these fraudulent texts can blend in with legitimate ones sent by the exchanges, as phones may display the sender as “Binance” or “Coinbase.”

Per the “Scam Prevention Survey” conducted by FinanceMagnates.com and FXStreet, close to 22% of participants reported that SMS scams are among the most frequent they encounter, outpacing scams seen on X.

How to Protect Yourself?

The regulator advises Australians to be vigilant and follow several protective measures. These include independently verifying any message sender before responding, avoiding clicking on links in unsolicited messages, enabling multi-factor authentication on accounts, and staying informed about emerging scam tactics.

For those who believe they've been targeted, ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term recommends immediate action: stop all communication with the scammer, contact financial institutions to halt any transactions, and report the incident to both the impersonated organization and Scamwatch.

The Australian Communications and Media Authority is developing an SMS Sender ID Register to help protect alpha tags from impersonation, though this solution isn't expected to launch until December 15, 2025.

Until then, ASIC urges Australians to remember the “stop, check, protect” approach when receiving suspicious messages—don't engage, verify independently, and take protective action if something feels wrong.

Recovery Scam

This marks yet another instance of individuals attempting to impersonate ASIC, following a mid-March warning from the Australian regulator. At that time, ASIC cautioned that fraudsters posing as agency officials were contacting potential victims and requesting “to provide a payment to enable funds or assets to be released.”

The alert was issued after reports surfaced of consumers receiving emails and phone calls from scammers pretending to be regulatory officials. ASIC classified these schemes as “recovery scams.”

“ASIC will never ask for a payment in any currency to enable funds or assets to be released,” the regulator added. “ASIC will also not require or accept payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term in digital or crypto assets (including stablecoins), whether that is to or from your crypto asset wallet or to an account at a digital asset exchange.”

While ASIC has only recently addressed this wave of impersonation attempts, the Cyprus Securities and Exchange Commission (CySEC) has been tackling a similar problem for years.

CySEC has repeatedly warned the public about individuals falsely claiming to represent its staff. In many cases, these impostors target vulnerable consumers on platforms like Trustpilot, offering to recover funds from defunct services in exchange for upfront payments.