Australian regulator busts over 600 cryptocurrency scams in past year

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

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

Australians lost $1.3 billion in investment fraud in 2023

“Australians continue to lose billions of dollars each year to scams,” said ASIC deputy chair Sarah Court. emphasized that the rapid evolution of the criminal landscape is closely linked to advances in technology, with artificial intelligence (AI) becoming a key tool used by scammers who continually refine their methods to deceive consumers.

Investment scams remain the most prevalent type of fraud affecting Australians, resulting in losses of $1.3 billion in 2023. Since July 2023, ASIC has coordinated the takedown of over 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 appearing to endorse fake online trading platforms. These scams make up the bulk of websites taken down by ASIC, as fraudsters leverage the credibility of well-known personalities to lure victims.

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

The site presented fake endorsements from celebrities such as Chris Hemsworth and Elon Musk, who lure consumers with promises of low upfront costs and unrealistic returns.

“On average, 20 investment scam websites are shut down every day. The swift removal of malicious websites is an important step in stopping criminal scammers from causing further harm to Australians,” Court said.

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

Knocking them down

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

The process involves referring suspicious websites to a third-party company specializing in cybercrime detection. Once evidence of malicious activity is confirmed, the takedown process begins, which often involves collaboration with other government agencies and industry partners.

Through its close collaboration with the National Anti-Scam Centre (NASC), ASIC has co-led the first NASC Meltdown Cell, which focuses on investment schemes. This collaboration has helped reduce overall losses from $1.5 billion in 2022 to $1.3 billion in 2023.