On March 4, the Australian Securities and Investments Commission (ASIC) announced its success in cracking down on investment scams. New data shows that nearly 3,500 fraudulent investment websites have been removed since ASIC Australia launched its anti-scam website feature in July 2023, a major step towards protecting Australian investors from digital scams.
In this crackdown on fraudulent investment scams, the latest enforcement and regulatory update from the Australian Securities and Investments Commission underscores the regulator's focus on disrupting investment scams and protecting consumers from digitally backed misconduct. The update highlights a number of ways ASIC Australia is undertaking surveillance activities to reduce and prevent consumer harm, address market integrity issues, combat greenwashing, and address insurance failures while promoting compliance with the law.
Joe Longo, chairman of ASIC Australia, said it was vital that more Australians were looking for other ways to maintain financial stability amid concerns about the rising cost of living. Joe Longo warns that fraudsters are exploiting the vulnerability to target unsuspecting individuals for illicit gains. He stressed that ASIC Australia will actively intercept investment scams at their source, effectively removing innocent investors from the digital investment space before they become victims.
Joe Longo also detailed recent initiatives undertaken by ASIC Australia, including a comprehensive review of major banks to detect, prevent and respond to fraud. Following the review, ASIC Australia has asked all financial institutions to strengthen their strategies to combat fraudulent activity. As of now, ASIC Australia is looking at a wider range of investments to include trustees involving banks and superannuation, and examining their efforts to protect members and clients from deprivation schemes.
In addition, Joe Longo highlighted the results achieved by ASIC in its regulatory and enforcement efforts. Between July 1 and December 31, 2023, ASIC Australia secured nearly $60 million in civil fines and nine criminal convictions, initiated 83 new investigations, initiated 19 civil proceedings, brought criminal charges against 19 individuals and conducted nearly 350 surveillance operations. Mr Longo said ASIC Australia would be actively involved in courtrooms and boardrooms to demonstrate the commission's commitment to financial integrity.
Joe Longo concluded: "Important regulatory and supervisory work can be expected from the Australian Securities and Exchange Commission in the coming months. "We are reviewing the way lenders meet their hardship obligations, how banks can support First Nations consumers in accessing low-fee accounts and how superannuation trustees provide vital membership services such as handling death benefit claims, and we will continue to work to ensure the financial system works for all Australians."
