Australian regulator has shut down more than 600 cryptocurrency scams in the past year

The Australian Securities and Investments Commission (ASIC) today announced it has busted more than 600 cryptocurrency scams in the past 12 months.

The announcement comes as ASIC marks the first anniversary of its investment scams initiative, revealing that more than 7,300 phishing and fraudulent websites have been taken down in the past year.

Australians lost $1.3 billion to investment fraud in 2023

“Australians continue to lose billions of dollars each year to scams,” said ASIC Deputy Chair Sarah Court. She noted that the rapidly changing criminal landscape is closely linked to technological advances, with artificial intelligence (AI) becoming a key tool used by fraudsters as they continually refine their methods to deceive consumers.

Investment scams remain the most common type of fraud affecting Australians, costing Australians $1.3 billion in losses in 2023. Since July 2023, ASIC has coordinated the removal of more than 5,530 fake websites, 1,065 phishing scam hyperlinks and 615 cryptocurrency investment schemes.

The regulator is particularly concerned about the rise of fake news articles and deepfake videos featuring public figures who appear to endorse fake online trading platforms. These scams make up the majority of websites taken down by ASIC, as fraudsters exploit the credibility of well-known figures to lure their victims.

In one notable case, ASIC’s takedown capability targeted the website “Quantum AI,” a fake investment platform that falsely claimed to use AI and quantum computing to generate high returns.

The site featured fake endorsements from celebrities like Chris Hemsworth and Elon Musk, luring consumers with promises of low upfront costs and unrealistic returns.

“Every day, on average, 20 investment fraud websites are taken down. The rapid removal of malicious websites is an important step in stopping criminal scammers from causing further harm to Australians,” the court said.

Another example is the cryptocurrency investment scam “Dexa Trade Markets”, which was taken down within an hour of being reported by an Australian consumer.

Make them fall

ASIC’s ability to take down investment fraud websites, a key part of the Australian Government’s anti-scam initiative, plays a vital role in disrupting scams and protecting Australians from financial harm.

The process involves reporting suspicious websites to a third-party company that specializes in cybercrime detection. Once evidence of malicious activity is confirmed, the removal process is initiated, often involving collaboration with other government agencies and industry partners.

Through its close partnership with the National Anti-Scam Centre (NASC), ASIC co-led NASC’s first merger cell, which focuses on investment programs. This collaboration helped reduce overall losses from $1.5 billion in 2022 to $1.3 billion in 2023.