In the first year of an investment scam disruption initiative, the Australian Securities and Investments Commission (ASIC) reported shutting down 615 fraudulent cryptocurrency investment platforms. These closures account for approximately 9% of the 7,300 total scam websites that the regulator identified and dismantled. This effort is part of ASIC’s broader campaign to combat a variety of investment frauds, including phishing websites and fake platforms that falsely promise high returns through the use of artificial intelligence (AI) or other deceptive technologies.

In 2023, Australians lost an alarming A$1.3 billion (about $870 million USD) to investment scams, which highlights the critical need for regulatory intervention. Cryptocurrency scams, in particular, have become increasingly prevalent. These scams often involve fraudsters who collect funds from victims under the pretense of investing in cryptocurrencies without actually making any investments. ASIC’s crackdown also extended to websites designed to harvest personal data through phishing tactics, as well as those falsely claiming to leverage advanced AI technologies to generate outsized returns.

Sarah Court, ASIC’s deputy chair, emphasized that while technological advancements have the potential to enhance daily life and business operations, they also create new opportunities for scammers to exploit unsuspecting victims. According to Court, the rapid removal of fraudulent websites is a crucial step in preventing further financial harm to Australians. She noted that, on average, 20 investment scam websites are being taken down each day, reflecting the scale of the problem and the ongoing efforts to address it.

Among the companies specifically targeted by ASIC was Dexa Trade Markets, a platform that falsely claimed to be internationally regulated, purported to have billions in trading volume, and claimed to have millions of investors. By naming such entities, ASIC aims to raise public awareness about the sophisticated nature of these scams and the importance of vigilance. As the digital landscape continues to evolve, ASIC’s ongoing efforts remain vital in protecting consumers from these increasingly sophisticated threats.

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