ASIC Deputy Chair Sarah Court warns that Australians lose billions yearly to scams, with AI helping fraudsters evolve their tactics.
The Australian Securities and Investments Commission (ASIC) announced today that it has dismantled over 600 cryptocurrency scams in the past 12 months.
This announcement comes as ASIC marks the first anniversary of its investment scam disruption initiative, revealing that more than 7,300 phishing and fraudulent websites have been taken down over the past year.
“Australians are still losing billions of dollars each year to scams,” said ASIC Deputy Chair Sarah Court. She emphasized that the rapid evolution of the criminal landscape is closely linked to advancements in technology, with artificial intelligence (AI) becoming a critical tool used by fraudsters who continually refine their methods to deceive consumers.
Investment scams remain the most prevalent type of fraud impacting Australians, leading to $1.3 billion in losses in 2023. Since July 2023, ASIC has coordinated the removal 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 who appear to endorse fake online trading platforms. These scams constitute the largest portion of ASIC’s website takedowns, as fraudsters leverage the credibility of well-known personalities to lure victims.
In one notable case, ASIC’s takedown disruption capability targeted the website “Quantum AI,” a fake investment platform that falsely claimed to use AI and quantum computing to generate high returns.
The site featured fake endorsements from celebrities like Chris Hemsworth and Elon Musk, enticing consumers with promises of low initial costs and unrealistic returns.
“Every day, an average of 20 investment scam websites are taken down. The quick removal of malicious websites is an important step to stop criminal scammers from causing further harm to Australians,” Court stated.
Another example involved the cryptocurrency investment scam “Dexa Trade Markets,” which was taken down within an hour after being reported by an Australian consumer.
Taking them Down
ASIC’s investment scam website takedown capability, a key component of the Australian government’s Fighting Scams initiative, plays a vital role in disrupting cons and safeguarding 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 is initiated, often involving collaboration with other government agencies and industry partners.
Through its close partnership with the National Anti-Scam Centre (NASC), ASIC has co-led the first NASC Fusion Cell, which focuses on investment schemes. This collaboration has contributed to a reduction in overall losses, from $1.5 billion in 2022 to $1.3 billion in 2023.