Scammers on Notice: ASIC Cracks Down on Online Investment Scams

The Australian Securities and Investments Commission (ASIC) is stepping up its fight against online investment scams by expanding its website takedown powers to cover social media ads. This move is designed to block scammers from reaching Australians through fake investment promotions and misleading digital campaigns.

Since the service began two years ago, ASIC has removed more than 14,000 scam and phishing websites, averaging 130 sites each week. However, scammers continue to evolve. Recent trends identified include fake “AI-powered” trading bots promising unrealistic returns, polished scam websites built from templates with forged documents, the use of embedded third-party tools such as trading charts and chatbots, AI-generated fake news articles with fabricated celebrity endorsements, and cloaking techniques that alter content depending on the user’s device or location.

Investment scams remain the most damaging type of scam for Australians, with $945 million lost in 2024. Although losses have fallen 25.9 percent compared with the 2022 peak of $3.1 billion, the threat is far from over. ASIC Deputy Chair Sarah Court stressed that while investigations and court actions remain essential, they cannot combat online scams alone. The expanded takedown service is closing off more pathways to scammers, but public vigilance is still critical.

ASIC advises Australians to be cautious of testimonials, celebrity endorsements, and claims of guaranteed “AI-generated” returns. Investors should always verify whether a company is licensed, check ASIC’s Investor Alert List, and ensure they understand how an investment works. Knowing how to report scams and respond if something goes wrong is equally important, with guidance available at Moneysmart.gov.au.

The message is clear: progress is being made, but scammers are adapting quickly. Protecting consumers will require both regulatory action and continued awareness from the public.