Australia’s Securities and Investment Commission (ASIC) has been actively cracking down on crypto scams, shutting down a staggering 615 fraudulent websites in the past year alone. This aggressive approach is part of ASIC’s broader effort to combat investment fraud in the country, with a total of 7,300 scam websites taken offline, including 5,530 fake investment platforms and 1,065 phishing sites.
The surge in investment scams has been alarming, leading to losses of approximately $1.3 billion in 2023. ASIC’s swift action in shutting down these malicious websites aims to disrupt the connection between scammers and potential victims, ultimately protecting Australians from financial exploitation. Sarah Court, ASIC’s Deputy Chair, emphasized the scale of the issue, stating that scammers continue to exploit Australians, stealing billions each year. She acknowledged the benefits of technology but also highlighted how it has provided new avenues for fraud.
Court stressed the importance of proactive measures in detecting and disrupting investment scams, with an average of 20 fraudulent websites being taken down daily. Among the sites shut down was Dexa Trade Markets, identified as a crypto scam platform that falsely claimed international regulation, high trading volumes, and millions of investors. This case serves as a reminder of the deceptive tactics employed by scammers in the crypto space.
The prevalence of crypto scams is a global issue, with California’s Department of Financial Protection and Innovation (DFPI) reporting that fraudulent trading platforms accounted for 87% of all crypto scams in 2024. Imposter websites are a common tactic used by scammers, often creating companies or websites with names similar to legitimate entities to deceive unsuspecting victims.
ASIC’s relentless efforts in combating crypto scams underscore the need for continued vigilance and consumer education in the digital asset space. By staying informed and cautious, individuals can protect themselves from falling victim to fraudulent schemes. The regulatory action taken by ASIC serves as a deterrent to scammers and reinforces the importance of a secure and trustworthy investment environment for all stakeholders in the crypto industry.