ASIC Removes 14,000 Scam Sites in Two Years, Crypto Fraud Accounts for 20% of Takedowns

The Australian Securities and Investments Commission (ASIC) has removed more than 14,000 investment scam and phishing websites since July 2023, with crypto fraud accounting for approximately 3,015 takedowns or 20% of all removals.

ASIC continues shutting down an average of 130 malicious sites weekly while expanding its capabilities to include social media advertisements in its fight against online investment fraud.

The regulator’s latest enforcement update reveals sophisticated scammer tactics, including AI washing schemes claiming fake trading bots generate passive income, slick website templates enabling quick copycat launches, and fake news articles featuring AI-generated celebrity endorsements.

Most notably, cloaking techniques are becoming increasingly employed. This technique enables scammers to alter displayed content based on the target’s location and device type, while third-party integrations provide false legitimacy.

ASIC achieved significant enforcement outcomes during the first half of 2025, including $57.5 million in civil penalties imposed by courts, six criminal convictions, and 345 new investigations commenced.

The agency wound up 95 companies linked to international “pig butchering” schemes after receiving nearly 1,500 victim claims totaling $35.8 million in losses across 14 countries.

Investment scams remain the leading fraud type impacting Australians, with victims losing $945 million in 2024 despite overall scam losses falling 25.9% from 2022’s peak of $3.1 billion.

ASIC’s enforcement priorities focus on misconduct exploiting superannuation savings, business models avoiding consumer credit protections, and greenwashing involving environmental sustainability claims.

The regulator secured major penalties against financial institutions, including a $27 million fine against AustralianSuper for failing to merge member accounts for 90,700 members over a decade.

Active Super faced a $10.5 million penalty for greenwashing misconduct after investing in securities it claimed were eliminated by environmental screens.

ASIC’s scam disruption work includes coordinating the removal of over 130 malicious websites weekly, adding 500 new unlicensed entries to its Moneysmart Investor Alert List, and publishing consumer warnings about specific fraud schemes.

The agency charged Mormarkets Pty Ltd director Brendan Gunn for dealing with suspected proceeds from investment scams.

Earlier this year, Federal Court Justice Angus Stewart approved winding up orders for 95 fraudulent companies, calling the evidence “overwhelming” after finding businesses were registered using false information.

Australian authorities have shut down 95 fraudulent firms linked to cryptocurrency investment and romance scams.#Australia #Scamhttps://t.co/moCheclWr4

Joint liquidators discovered only three companies held assets while recommending immediate deregistration for 92 others.

The enforcement campaign extends to traditional financial misconduct, with National Australia Bank paying $15.5 million for failing 345 customers seeking hardship support.

Allianz Australia and AWP Australia received $16.8 million in combined fines for misleading travel insurance statements.

Australian authorities have intensified crypto oversight through coordinated enforcement targeting non-compliant exchanges and money laundering networks.

Just today, AUSTRAC directed Binance Australia to appoint external auditors after identifying serious anti-money laundering and counter-terrorism financing concerns, giving the exchange 28 days to nominate candidates.

@binance faces mandatory audit in Australia over serious AML and terror financing concerns amid nationwide enforcement campaign.#Binance #Australiahttps://t.co/lVsofJm6gC

The action follows AUSTRAC’s broader campaign targeting 13 remittance and digital currency exchange providers over compliance issues while investigating 50 additional operators.

The agency cancelled, suspended, or refused renewals for nine providers failing to meet Anti-Money Laundering and Counter-Terrorism Financing Act obligations.

Similarly, AUSTRAC contacted 427 registered digital currency exchange providers that appeared inactive, warning them that they risk deregistration if they fail to withdraw voluntarily.

Many platforms have ceased operations but remain listed, potentially exposing the system to criminal exploitation by bad actors seeking legitimacy.

The agency plans to launch a publicly searchable register enabling consumers to verify whether crypto exchanges are officially registered and under regulatory scrutiny.

This initiative addresses growing concerns about criminals exploiting legitimate registrations to operate fraudulent platforms.

Earlier this month, ASIC charged former barrister Dimitrios Podaridis alongside three other men for facilitating investment scams, converting victim funds into cryptocurrency between January and July 2021.

The scheme utilized fake comparison websites and professional documentation mimicking major financial services providers.

AUSTRAC has also established a crypto task force addressing violations by crypto ATM operators across Australia’s 1,600 machines, the highest concentration in the Asia-Pacific region.

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