The Australian Securities and Investments Commission (ASIC) has unveiled the success of its efforts in combating investment scams. New data has revealed that since the launch of ASIC's scam capability to takedown websites in July 2023, nearly 3,500 fraudulent investment websites have been eradicated, marking a stride in protecting Australians from digital fraud.

Combating Digital Investment Scams

The latest enforcement and regulatory update from ASIC underscored the regulator's focus to disrupt investment scams and safeguarding consumers against digitally enabled misconduct. The update highlighted ASIC's multifaceted approach, which includes surveillance activities aimed at minimizing and preventing consumer harm, addressing market integrity issues, combating greenwashing, and tackling insurance failures while promoting compliance with the law.

The Chairman of ASIC, Joe Longo, emphasized the critical need for heightened vigilance in light of escalating cost-of-living concerns, which have compelled more Australians to seek additional avenues for financial stability. Longo warned that scammers are exploiting this vulnerability, preying on unsuspecting individuals for illicit gains. He underscored ASIC's proactive stance in intercepting investment scams at their source, effectively removing them from the digital landscape before innocent consumers fall victim.

Longo elaborated on ASIC's recent initiatives, including a comprehensive review of major banks' protocols for detecting, preventing, and responding to scams. Following this review, ASIC has set forth expectations for all financial institutions to bolster their strategies in combating fraudulent activities. The focus has now shifted towards a broader spectrum of banks and superannuation trustees, with ASIC scrutinizing their efforts to shield members and customers from predatory schemes.

ASIC's Operational Updates and Priorities

Longo also highlighted the outcomes achieved by ASIC's regulatory and enforcement endeavors. In the preceding half-year period ending on 31 December 2023, ASIC secured close to $60 million in civil penalties and secured nine criminal convictions. Additionally, the commission initiated 83 new investigations, launched 19 civil proceedings, criminally charged 19 individuals, and conducted nearly 350 surveillances. Longo emphasized ASIC's active presence in courts and boardrooms across Australia, reflecting the commission's unwavering commitment to upholding financial integrity.

“Australians can continue to expect significant regulatory and surveillance work from ASIC in the coming months. We are scrutinising the way lenders comply with their hardship obligations, how banks support First Nations consumers to access low-fee accounts, and how superannuation trustees deliver important member services, such as how they handle death benefits claims. We will continue to work to ensure the financial system works for all Australians,” concluded Longo.