The Australian regulator has shut down more than 600 crypto scams in the past year

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

This announcement comes as ASIC marks the first anniversary of its Investment Scam Interruption initiative, revealing that more than 7,300 fraudulent and phishing websites have been taken down in the past year.

Australians lost $1.3 billion to investment fraud in 2023

“Australians are still losing billions of dollars every year to scams,” ASIC deputy chair Sarah Court said. He stressed that the rapidly evolving criminal landscape is closely linked to technological advances, with artificial intelligence (AI) becoming a critical tool used by fraudsters who are continually refining their methods to deceive consumers.

Investment scams remain the most common type of fraud affecting Australians, causing losses of $1.3 billion by 2023. Since July 2023, ASIC has coordinated the removal of over 5,530 fake websites, 1,065 hyperlinks phishing scam 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 majority of withdrawals from ASIC’s websites, as fraudsters take advantage of the credibility of well-known personalities to lure victims.

In one notable case, ASIC withdrawal disruption capability was directed at the “Quantum AI” website, a bogus 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, luring consumers with promises of low upfront costs and unrealistic returns.

“An average of 20 investment scam websites are taken down every day. The rapid removal of malicious websites is an important step in preventing criminal scammers from causing further harm to Australians,” the Court said.

Another example included the “Dexa Trade Markets” cryptocurrency investment scam, which was pulled an hour after being reported by an Australian consumer.

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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 protecting Australians from financial harm.

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

Through its close collaboration with the National Anti-Scam Center (NASC), ASIC has co-led the first NASC Fusion Cell, which focuses on investment schemes. This collaboration has contributed to a reduction in global losses, from $1.5 billion in 2022 to $1.3 billion in 2023.

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