The Australian Securities and Investments Commission (ASIC) announced today (Thursday) it is conducting a global search for a service provider to identify and remove investment scam and phishing websites, as part of its ongoing efforts to combat online financial fraud.
ASIC Launches Global Search for Investment Scam Website Takedown Service
The regulator has issued a request for tender (RFT) for a contract that could last up to five years, with the current agreement set to expire in June 2025. The new service will identify, take down, and provide intelligence on fraudulent websites targeting Australian investors.
Since July 2023, ASIC has coordinated the removal of over 7,300 phishing and investment scam websites. This initiative is part of the Australian Government's broader “Fighting Scams” campaign and supports the work of the National Anti-Scam Centre (NASC).
“Combating and disrupting investment scams is a key priority for ASIC,” the regulator commented in a press release. “The service will also provide website takedown intelligence that can be used to warn the public about new investment scam trends and scams impersonating organisations regulated by ASIC.”
The scope of the service will include targeting websites falsely claiming ASIC authorization, fake investment trading platforms, crypto-asset-related scams, and phishing attempts impersonating ASIC-regulated organizations. The provider will also be expected to furnish intelligence on emerging scam trends to help warn the public.
This move comes as financial regulators worldwide grapple with the growing threat of online investment fraud. In 2023, Australians reported losses of $1.3 billion to investment scams, highlighting the urgent need for robust protective measures.
How much can ASIC pay for the service? The offer does not specify exact amounts, but there are mentions of additional requirements if the offer exceeds A$4 million. For comparison, at the end of last year, Cyprus's CySEC was seeking experts for regulatory oversight of local investment firms, offering €240,000.
New Powers and Comments on “Margin Discounts”
ASIC also announced today that it has gained expanded regulatory powers as part of reforms to the country's financial market infrastructure (FMI) laws, aimed at strengthening stability and efficiency in Australia’s financial system.
Although the new FMI laws primarily target broader market structures, they could have an indirect impact on FX/CFD brokers operating in Australia. The enhanced regulatory authority given to ASIC and the RBA might result in closer scrutiny of the financial services sector, including over-the-counter derivatives markets where FX and CFD products are traded.
In addition, ASIC raised concerns that some CFD derivative issuers might be offering “margin discounts” to retail clients holding opposing long and short positions, which could violate ASIC regulations.
