TLDR

• Australia’s financial regulator ASIC has taken down over 600 crypto scams in the last 12 months
• ASIC warns that AI and deepfakes are making it harder for consumers to identify fraudulent schemes
• An average of 20 investment scam websites are being taken down each day
• Investment scams remain the leading cause of financial losses for Australians, with $1.3 billion lost in 2023
• The number of crypto-related scams has declined month-over-month since April 2024

The Australian Securities and Investments Commission (ASIC) has revealed efforts to combat online investment scams, particularly those involving cryptocurrencies.

In the past 12 months, ASIC has coordinated the removal of over 600 crypto scams as part of a broader initiative to disrupt fraudulent online investment platforms targeting Australian savings.

According to ASIC’s recent statement, the regulator has helped take down 5,530 fake investment platform scams, 1,065 phishing scam hyperlinks, and 615 cryptocurrency investment scams since July 2023. These efforts amount to an average of 20 websites being removed daily, highlighting the scale of the problem facing Australian investors.

ASIC Deputy Chair Sarah Court expressed particular concern about the evolving nature of these scams, especially with the advent of deepfakes and other AI-generated content.

“The scams landscape is rapidly evolving. Innovative technology developments may improve how we live and work, however, they also provide new opportunities for scammers to exploit,” Court stated.

The regulator warned that these technological advancements are making it increasingly difficult for the average person to detect fraudulent schemes.

Scammers are employing sophisticated tactics, including the use of fake celebrity endorsements featuring well-known figures like Chris Hemsworth and Elon Musk, to lure consumers into investments with low initial costs and unrealistic returns.

Investment scams remain the leading cause of financial losses for Australians, with an estimated $1.3 billion lost in 2023 alone.

These scams often propagate through social media platforms, using fake news articles and deepfake videos of local public figures to appear legitimate.

To combat these threats, ASIC has partnered with Netcraft, a London-based internet services company that specializes in detecting and disrupting cybercrime. This collaboration allows for the rapid takedown of suspicious websites, often within hours of them being reported.

The types of scams targeted by ASIC’s takedown efforts vary, with fake investment trading platforms making up the majority (5,530), followed by phishing attempts (1,065), and cryptocurrency investment scams (615). Court acknowledged that while taking down websites as they appear could be seen as a game of whack-a-mole, the scheme is “making a difference.”

While the overall number of scam reports has increased, there has been a decline in the total financial losses.

The National Anti-Scam Centre reported that despite a 18.5% increase in scam reports in 2023, the total losses decreased by 13.1% to $2.77 billion. Court attributed this success to a broad range of measures across industry sectors, including banks and telecommunications companies, as well as increased public awareness.

It’s worth noting that the number of crypto-related scams has been declining month-over-month since April 2024, following global trends. This aligns with data from blockchain analysis firm Chainalysis, which reported a 29% drop in crypto scams last year.

However, the threat landscape continues to evolve. Chainalysis recently revealed that crypto criminals are shifting their focus from decentralized platforms to centralized exchanges, employing advanced social engineering tactics in increasingly sophisticated attacks.

The post Australian Regulator ASIC Reports Takedown of 600+ Crypto Scams, Warns of AI-Enhanced Threats appeared first on Blockonomi.

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