ASIC Reports Surge in Crypto Investment Scams in 2023

Australia’s securities regulator has reported that over 8% of the scam websites it took down in 2023 were focused solely on crypto investments.

The Australian Securities & Investments Commission (ASIC) has released a report marking the first anniversary of its investment scam disruption initiative, announcing the removal of thousands of phishing and investment scam websites.

In a recent press release, ASIC revealed that since July 2023, it has coordinated the takedown of more than 7,300 phishing websites. Of these, 5,530 were fake investment platforms, 1,065 were phishing scam links, and 615 were crypto investment scams.

Investment scams continue to be the most prevalent type of fraud affecting Australians, with losses totaling $1.3 billion in 2023 alone. ASIC emphasized the need for consumers to stay vigilant, particularly against social media links that promote online trading and crypto investments.

“Every day an average of 20 investment scam websites are taken down. The quick removal of malicious websites is an important step to stop criminal scammers from causing further harm to Australians.”

— ASIC Deputy Chair Sarah Court

ASIC attributed the widespread phishing activity to the use of fake news articles and deepfake videos of public figures endorsing fraudulent online investment platforms, especially on social media. These deceptive platforms represent the largest segment of the websites ASIC has targeted.

In early August, the Australian Federal Police, working with Chainalysis, identified over 2,000 compromised crypto wallets belonging to Australians. Although it remains unclear if any stolen assets were recovered, exchanges such as BTC Markets, Binance, and Crypto.com collaborated with authorities to support Australian victims and prevent further losses. The police noted that bad actors have stolen more than $4 billion in crypto since May 2021 through phishing attacks alone.

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