Urgent warning: Scammers misuse ASIC identity in texts

The Australian Securities and Investments Commission (ASIC) has issued a warning about scammers using “alpha tags” in text messages to masquerade as the regulatory authority.

This deceptive tactic involves labeling messages with the sender name “ASIC,” misleading recipients into believing they are in communication with the regulator. However, ASIC said that it does not send text messages using alpha tags.

Understanding alpha tags

Alpha tags are alphanumeric identifiers that replace phone numbers with names in text messages, giving the appearance that they are from a credible organisation, such as a bank or government agency.

While this feature lends authenticity, it is easily exploited by fraudsters to gain trust and trick individuals into divulging sensitive data.

The risk of scam techniques

Scammers employing this method are not only impersonating ASIC through texts but also via emails and forged documents.

ASIC has dedicated a webpage to educating the public on recognising these scams, including tips on distinguishing genuine communications from fraudulent ones, as well as providing updates on recent scam activities.

How to shield yourself from scams

Despite a fall in overall scam losses and reports in 2024, continued vigilance and adaptation of defensive strategies are crucial to maintain and extend these gains against increasingly sophisticated scam operations.

To safeguard against these sophisticated scams, consider several proactive measures:

• Verify the sender: Before responding to any messages, independently confirm the authenticity of the sender by contacting the organisation directly through verified contact details.
• Avoid links and attachments: Do not click on any links or download attachments from unsolicited or suspicious messages. Instead, enter the organisation’s website address manually into your browser.
• Enable multi-factor authentication (MFA): Add an extra security layer to your accounts by enabling MFA, which requires additional verification methods to gain access.
• Stay informed: Keep up-to-date with the latest scam tactics by subscribing to updates from reputable cybersecurity sources, such as the Australian Cyber Security Centre and the National Anti-Scam Centre.

Reporting and future precautions

If you encounter a suspicious message, report it immediately to the impersonated organisation and your mobile service provider.

Looking ahead, the Australian Communications and Media Authority is developing an SMS Sender ID Register, set to launch by December, aimed at protecting consumers from such impersonation scams.

Be proactive: Recognise, report, and prevent scams

Remember the critical steps if you suspect a scam:

• Stop: Do not engage with the message or provide personal information.
• Check: Visit ASIC’s official website for alerts on known scams.
• Protect: If you suspect misuse of your information, contact your bank immediately and report the incident to authorities like Scamwatch and IDCARE.

These measures are crucial in defending against the increasing sophistication of scammers and ensuring the security of your personal and financial information.

Read the ASIC announcement.