The escalating problem of investment scams in Australia, which is costing citizens more than $1 billion a year, has catalyzed the creation of the National Anti-Scam Centre's first fusion cell. The Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC ) will be at the helm of the new initiative.

The fusion cell will bring representatives from banks, digital platforms and the telecommunication industry together to formulate strategies to disrupt investment scams and lessen financial losses.

ASIC and ACCC Collaborate to Combat Investment Scams

The fusion cell is a time-limited task force conceived to connect expertise from both the public and private sector. This is aimed at swiftly addressing specific pressing issues. A variety of fusion cells will be organized by the National Anti-Scam Centre, each with different participants, to focus on distinct types of scams.

"Investment scams lead to the highest level of reported individual losses and cause emotional devastation for victims," Catriona Lowe, the Deputy Chairwoman of ACCC, highlighted. She explained that the decision is to prioritize investment scam disruption since the focus of the first fusion cell is to facilitate swift action from finance, telecommunications, and digital platforms and halt these scams.

Welcoming the initiative, Sarah Court, the Deputy Chairwoman of ASIC, emphasized the importance of a cooperative approach between regulators and the private sector in tackling this issue.

“ASIC and the ACCC working together as part of the National Anti-Scam Centre's first fusion cell is an important step towards protecting Australians from harmful investment scams,” Court added.

The new project came into effect a few months after Australians reported a record amount of AUD 1.5 billion in investment scam losses in 2022. The losses jumped 80% compared to the numbers reported in the previous year. The ACCC further acknowledges that the actual figures may be significantly higher than the official figures.

Goals of the Investment Scam Fusion Cell

The fusion cell will be operational for six months, with the National Anti-Scam Centre disclosing outcomes publicly. The cell's objectives include early intervention to prevent scammers from reaching potential victims and removing scam-related websites from the internet.

In addition, the new initiative will share information about scam activities to enable the private sector to disrupt scams and build public awareness campaigns to help people avoid these classifications of fraud.

Consumers are advised to be wary of seemingly lucrative investment opportunities with little or no risk. Australians can lessen their risk of falling prey to investment scams by conducting basic checks, such as ensuring that any party promoting financial products is licensed.

The National Anti-Scam Centre, which was launched this month, plans to develop its capability and data-sharing technology over the next three years. This development will allow the center to receive scam reports from any institution, analyze trends in depth to disrupt scams and educate Australians.