ASIC shutting down 130 investment scam websites a week

The Australian Securities and Investments Commission continues to take a blowtorch to scam websites, shutting them down at a rate of 130 a week.

In its half-yearly update, the regulator reported that it had removed 2460 investment scam websites and online advertisements, bringing the total number of blocked sites to more than 10,000 since mid-2023.

Among these were 7227 fake investment platforms, 1564 phishing scams, and 1257 scam sites targeting cryptocurrency investors.

ASIC has ramped up enforcement this year, with priorities reflecting the increased cost-of-living pressures consumers face and a focus on preventing financial harm. Chair Joe Longo said the regulator was “closely monitoring developments in the insurance and superannuation sectors.”

Over the half-year, ASIC commenced 109 investigations — a rise of 31 per cent — secured 13 criminal convictions (up 44 per cent), and initiated 15 new civil proceedings.

The regulator took legal action against HSBC Australia, accusing it of failing to protect customers who were scammed out of $23 million.

It also launched proceedings against National Australia Bank for allegedly failing 345 customers seeking hardship support. A review into the banks found four had systematically charged high fees to low-income account holders, which ASIC said would result in more than $28 million in refunds to customers.

ASIC also commenced proceedings against QBE Insurance, alleging it misled more than 500,000 customers over promised discounts.

The regulator turned its sights on greenwashing, securing record penalties against major financial institutions misrepresenting their sustainable investment claims. Mercer Superannuation was fined $11.3m, while Vanguard Investments Australia received a $12.9m penalty.

Meanwhile, Macquarie Bank was hit with a record $4.995m fine for market gatekeeper failures in the electricity futures market.

“Using our full regulatory toolkit, we’ve focused on landmark cases and compliance action that deliver financial outcomes and protect consumers and investors,” Mr Longo said.