The Australian Securities and Investments Commission (ASIC) is stepping up its fight against online investment scams, having dismantled more than 10,000 fraudulent websites and ads this year alone.
ASIC’s robust enforcement and regulatory update revealed a staggering 7,227 fake investment platforms, 1,564 phishing links, and 1,257 cryptocurrency scams have been taken down.
In a significant move, ASIC, which recently released its regulatory outlook for 2025, has initiated court proceedings against HSBC Australia, accusing the bank of failing to adequately shield customers from scams, which resulted in multimillion-dollar losses.
This follows a comprehensive review of anti-scam practices across 15 banks, which indicated a need for substantial improvements.
Sarah Court (pictured left), ASIC’s deputy chair, highlighted the agency’s dedication to fighting fraud.
“Scammers are using increasingly sophisticated technology to steal money from hard-working Australians with investment scams that can look shockingly legitimate,” Court said. “This new data demonstrates that ASIC is making Australia safer by stamping out these scams before they reach Australians.”
She further stressed ASIC’s commitment to continued vigilance.
“ASIC will continue to protect Australians from scams by removing them before they reach consumers and holding financial institutions accountable for their scam detection and response practices,” Court said.
Investment scams typically lure individuals with promises of high returns with little or no risk, often using fake data and high-pressure tactics to appear credible.
Australians lose more money to investment scams than to any other type of fraud, making them especially dangerous. In 2024 alone, investment scams claimed over $192.3 million from Australians, with the median amount lost being $9,500, according to an SBS News report.
These schemes often feature convincing marketing and technologies that mimic legitimate investments. Scammers use tactics like allowing small withdrawals to build trust, only to block larger withdrawals later, trapping investors' funds.
The last six months have seen ASIC ramp up its investigative efforts by 31%, initiating 109 new probes, 15 court actions, and completing 376 surveillances.
The agency has achieved substantial success in both civil and criminal courts, securing $46.6 million in civil penalties and 13 criminal convictions.
ASIC Chair Joe Longo (pictured right) reflected on the progress.
“The outcomes ASIC has achieved over the last six months highlighted that our organisational redesign and a refreshed executive team were having positive impacts,” Longo said. “The changes we have made mean ASIC is able to more efficiently process intelligence, leading to earlier commencement of investigations and surveillances.”
He also noted the strategic emphasis on the superannuation sector, bolstered by new governmental mandates for higher service standards.
ASIC’s report details several high-profile enforcement actions, including cases against NAB, QBE Insurance, and Cbus trustee United Super, addressing issues from misleading pricing practices to delays in insurance claim processing.
Additionally, ASIC has taken Regional Express Holdings to court for alleged misleading conduct and disclosure failures.
With the unveiling of its 2025 enforcement priorities, ASIC aims to address the rising cost-of-living pressures and enhance consumer protection, signaling a firm stance on compliance and enforcement moving forward.
