Australia’s financial regulator, the Australian Securities and Investments Commission (ASIC) says it took significant action against crypto scams by taking down over 600 fraudulent schemes in the last 12 months.
In an August 19 statement, ASIC reported it has shut down 5,530 fake investment sites, 1,065 phishing links, and 615 cryptocurrency scams since July 2023.
ASIC’s Deputy Chair, Sarah Court, expressed concern over how scammers are using advanced technology, like artificial intelligence (AI), to trick people.
“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,” she said.
However, investment scams have remained a major issue in Australia, with the regulator reporting that they were the leading cause of financial losses, amounting to $1.3 billion in 2023.
One common tactic is using fake endorsements from celebrities like Chris Hemsworth and Elon Musk to attract victims by promising quick and easy returns. “Scammers can create fake reviews and news to make their offers seem legitimate,” ASIC warned.
In one recent example, scammers used AI to create a deepfake video and voice of Elon Musk, which was streamed on more than 35 YouTube channels in June. The video falsely promised viewers that they would get double the amount of crypto they invested.
These types of scams are becoming more sophisticated, making it harder for people to distinguish between real opportunities and fraudulent schemes.
ASIC also flagged a crypto investment firm, Dexa Trade Markets, which falsely claimed to be regulated and handling billions in trading volume. They made it clear that this firm does not have any legal approval to operate in Australia.
Also Read: HSBC Australia Blocks Crypto Payments Over Fraud Risks
