ASIC warns against social media scams

ASIC has issued a warning to consumers about the increasing prevalence of fraudulent activities on social media platforms, where its logo and branding are misused to exploit its reputable image and lure unsuspecting victims.

Fake endorsements

ASIC has identified numerous instances where its logo has been improperly used to promote bogus investments and stock market trading courses.

One such example is the Stock Trading Master Class ads, falsely claiming ASIC sponsorship and leading consumers to a questionable entity known as Lonton Wealth Management Center, which ASIC had already flagged on its Investor Alert List as of May 21.

Impersonations and cold calling

The scams extend beyond misleading ads; ASIC has also noted an uptick in cold calls from individuals falsely representing themselves as ASIC employees, who falsely engage consumers to discuss investment refunds.

Additionally, a phony ASIC account on Telegram has been soliciting funds from investors under the guise of releasing held investment funds in Australia.

See LinkedIn post here.

Identifying fraudulent ASIC ads

Consumers can identify an ad falsely claiming association with ASIC if it:

• uses the ASIC logo to endorse financial products or services
• claims a relationship with ASIC, such as being “supported” or “sponsored” by the organisation
• directs to a social media account that uses the ASIC logo but lacks a historical presence or uses different social media handles from the official ASIC accounts

Official ASIC social media accounts

ASIC’s legitimate social media presence is confined to specific accounts:

• Facebook: MoneysmartAU
• X/Twitter: MoneysmartTeam, @asic_connect, and @asicmedia
• Instagram: MoneysmartAU
• LinkedIn: ASIC

Steps to take if you encounter a scam

If you encounter a suspected scam ad, ASIC advises:

1. Stop: Avoid interacting with the ad. Instead, scroll past, delete, or refresh your browser.
2. Think: Verify the legitimacy of the ad by checking ASIC’s official accounts and comparing social handles.
3. Protect: Report the fraudulent ad to the social media platform and notify Scamwatch and the National Anti-Scam Centre to assist in its removal.

Advice for those scammed

For individuals who believe they have fallen victim to such scams, ASIC recommends immediate action to prevent further financial loss, including blocking all contact with the scammer, reporting the incident to their financial institution, and contacting IDCARE for identity protection support.

Read the ASIC announcement here.

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