Recently, Australia’s Securities and Investment Commission (ASIC) made headlines for taking down a whopping 615 crypto scam websites over the course of the last year. This move is part of a larger initiative to combat investment fraud within the country. In total, the regulator shut down 7,300 scam websites, which included 5,530 fake investment platforms and 1,065 phishing sites. The surge in investment scams has prompted ASIC to take action, with losses from such scams totaling around $1.3 billion in 2023.
Sarah Court, ASIC’s Deputy Chair, emphasized the devastating effects of investment scams on Australians. Each year, billions of dollars are stolen from unsuspecting victims who fall prey to these fraudulent schemes. While technology has its benefits, it also opens up new avenues for scammers to deceive individuals. Court stressed the importance of swiftly removing these sites to protect Australians, highlighting the average of 20 investment scam websites being taken down daily. She added that scammers will continue to evolve and find new ways to lure consumers, but ASIC remains proactive in detecting and disrupting such scams.
One of the identified scam platforms was Dexa Trade Markets, a crypto scam platform that was brought to ASIC’s attention after an Australian consumer reported being a victim. The platform falsely claimed to have international regulation, high trading volumes, and millions of investors. This regulatory action underscores the ongoing challenge of crypto scams within the industry. In a similar vein, California’s Department of Financial Protection and Innovation (DFPI) revealed that fraudulent trading platforms made up 87% of reported crypto scams in 2024. The prevalence of imposter websites, with names designed to mimic legitimate businesses, continues to confuse consumers and facilitate fraudulent activity.
ASIC’s crackdown on crypto scam websites is a step in the right direction towards safeguarding investors and consumers from falling victim to fraudulent schemes. By swiftly removing these sites, regulators help disrupt the connection between scammers and potential victims. As the landscape of investment fraud continues to evolve, it is imperative for authorities to remain vigilant and proactive in detecting and combating scams to protect the financial well-being of individuals.
