Table of Contents
Canberra, Australia - In a strategic move to protect Australian consumers, the Australian Securities and investments Commission (ASIC) is expanding its capabilities to include the removal of fraudulent investment advertisements on social media platforms. This escalation comes as the agency reports meaningful progress in dismantling online investment scams,having taken down over 14,000 malicious websites since initiating the program two years ago.
The announcement,detailed in ASIC’s recently released Enforcement and Regulatory Update, underscores the growing sophistication of online fraudsters and the need for proactive measures.ASIC currently removes approximately 130 harmful websites each week.
Emerging Scam Trends
ASIC has identified five key trends in online investment scams over the past six months.These include the deceptive use of artificial intelligence (AI), the proliferation of easily replicated scam website templates, the exploitation of legitimate third-party content, the creation of fake news articles, and the use of cloaking techniques to target specific audiences.
Did You Know? Scammers are increasingly using AI to generate convincing fake endorsements and news articles, making it harder to distinguish between legitimate investment opportunities and fraudulent schemes.
Key Scam Tactics Explained
- AI Washing: Scammers falsely claim their platforms utilize AI trading bots to guarantee passive income and unrealistic returns.
- Scam Website Templates: Readily available templates allow scammers to quickly launch convincing, yet fraudulent, websites.
- Third-Party Content Exploitation: Embedding legitimate elements like live trading charts and chatbots lends a false sense of credibility.
- Fake News Articles: AI-generated articles featuring fabricated celebrity endorsements are used to collect contact information.
- Cloaking: Scammers alter website content based on the user’s location or device to evade detection.
ASIC Deputy Chair Sarah Court emphasized the importance of this expanded takedown capability. “Expanding our investment scam takedown capability to social media ads will help safeguard Australian consumers,” Court stated. “ASIC is shutting down around 130 of these investment scam websites every week, effectively blocking pathways to potential victims.”
Court further noted that while customary enforcement methods remain crucial, they are insufficient to combat the scale of online scams. “The takedown capability is one example of how we are monitoring the latest trends and acting to protect Australians from those who try to steal from them.”
Financial Impact of Investment Scams
Investment scams continue to be the most financially damaging type of scam affecting Australians. The National Anti-Scam Center reports that Australians lost a staggering $945 million to these scams in 2024. While overall scam losses have decreased by 25.9% as the peak of $3.1 billion in 2022, the threat remains significant.
Pro Tip: Always independently verify the legitimacy of any investment opportunity before committing funds. Don’t rely solely on testimonials or promises of guaranteed returns.
To help consumers identify and avoid scams, ASIC recommends the “Stop, Check, Protect” approach:
| Step | Action |
|---|---|
| Stop | Be cautious of testimonials, endorsements, and professional-looking websites. Avoid pressure to invest quickly.don’t believe claims of ‘AI generated’ returns or guaranteed safety. Avoid investments via messaging apps. |
| Check | Verify if the company is licensed by ASIC. Check ASIC’s moneysmart Investor Alert List. Understand how the investment works. Verify the authenticity of news articles. |
| protect | Know your rights and how to report scams. |
ASIC urges Australians to report any suspected investment scams through the Moneysmart website: Report an investment scam – Moneysmart.gov.au.
Background: Investment Scam Takedowns
Between July 1, 2023, and June 30, 2025, ASIC coordinated the removal of over 14,000 investment scam and phishing websites and online advertisements, categorized as follows:
- 8,330 fake investment platform scams
- 2,465 phishing scam hyperlinks
- 3,015 cryptocurrency investment scams
As noted by the Australian Competition and Consumer Commission (ACCC), scams are evolving rapidly, requiring constant vigilance from both regulators and consumers ACCC scam Information.
What steps do you take to verify the legitimacy of an investment opportunity? How confident are you in identifying a sophisticated online scam?
The Evolving Landscape of Online Fraud
Online investment scams are a persistent and evolving threat, driven by technological advancements and the increasing sophistication of fraudsters. The use of AI, as highlighted by ASIC, represents a significant escalation in these tactics. The global nature of the internet also presents challenges, requiring international cooperation to effectively combat these crimes. Ongoing education and awareness campaigns are crucial to empower consumers to protect themselves.
Frequently asked Questions About investment Scams
- What is an investment scam? An investment scam is a deceptive scheme designed to trick individuals into investing money with the promise of high returns, often with little to no risk, which ultimately results in financial loss.
- How can I protect myself from investment scams? Follow ASIC’s “stop, Check, Protect” guidelines, be skeptical of unsolicited investment offers, and always verify the legitimacy of any investment opportunity.
- What should I do if I think I’ve been scammed? Immediatly report the scam to ASIC via Moneysmart and contact your bank or financial institution.
- Are cryptocurrency investments particularly vulnerable to scams? Yes,cryptocurrency investments are frequently targeted by scammers due to the relative lack of regulation and the potential for anonymity.
- What role does AI play in investment scams? Scammers are using AI to create fake endorsements, generate convincing marketing materials, and automate phishing attacks.
we hope this information empowers you to navigate the investment landscape with confidence. Please share this article with your friends and family to help spread awareness and protect others from falling victim to these harmful scams. We welcome your comments and feedback below!
