ASIC steps up assault on scammers, gaining new powers to shut down websites

A year after completing a three-week trial to shut down fraudulent websites, the corporate regulator has finally been granted the powers it needs to protect more Australians from scams.

The corporate watchdog has gained new powers to shut down fraudulent and malicious websites in a move it says will protect more Australians from scams and cyber crime.

Following a three-week trial last year, the Albanese government has launched a “take down service” with the Australian Securities and Investments Commission. It comes as the big banks which have been stepping up their security to halt fraudulent transactions, with NAB homing in on ticket scams, which cost Australians about $36m a year.

ASIC deputy chair Sarah Court said take down service was developed with Netcraft – a British third-party cybercrime detection provider – and “removes or limits access to fraudulent and malicious websites”.

“We recognise that scammers rely on technology to perpetrate investment scams,” Ms Court said.

“This includes using sophisticated websites to trick Australians into believing they are making genuine investments. Our website take down service helps us identify and disrupt investment scam and phishing websites from causing further harm to Australians.”

Ms Court said since July 2023, ASIC has disrupted scam activity, shutting down more than 2,100 investment scam and phishing websites, and is in the process of closing 400 more. This equates to removing 20 “dodgy” websites a day.

ASIC has been shutting down about 20 ‘dodgy’ websites a day since July to protect Australians from scams.

The federal government allocated $86.5m in this year’s budget to combat scams and online fraud, including the development of a National Anti‑Scams Centre.

Assistant Treasurer Stephen Jones said last year, scammers stole more than $3bn – almost a five-fold increase compared with 2020 – from Australians. The average loss from a scam is around $20,000, while the average household has about $34,000 in savings.

Mr Jones said 60 per cent of all scam losses involve investment scams, and the take down service will identify and remove fraudulent and malicious investment scam websites reported by ASIC as well as those the regulator identifies.

Assistant Treasurer Stephen Jones. Picture: Gary Ramage/NCA NewsWire

“We are making some serious headway in disrupting investment scams. ASIC’s website take down service is removing around 20 dodgy websites a day. In partnership with the ongoing work of the NASC’s (National Anti‑Scams Centre’s) investment scam fusion cell, we are helping protect Australians from online scams, making dodgy investments, and losing hard-earned savings,” Mr Jones said.

“The good news – our anti‑scams initiatives are working. We’re beginning to see a trend of more reporting due to better awareness, and less financial losses. The NASC has reported a decline in losses to investment scams over the last quarter. This is a trend we’d like to see continue – but we all must stay vigilant”.

Ticket scams were among the most popular fraud schemes, robbing $36m from Australians so far this year, according to NAB, which has been stepping up its security as well to ensure its customers aren’t fleeced.

NAB security advisory & awareness manager Laura Hartley said millennials were particularly vulnerable to ticket scams out of fear of missing sellout concerts like Taylor Swift’s upcoming Australian tour.

But she said the bank was proactively warning customers via “real time” alerts in their banking app or online account if a payment shows signs that it could be a scam.

“Scammers play on our FOMO (fear of missing out) for concert tickets, often responding to fans who post on social media looking for tickets or listing bogus ones online that don’t actually exist,” Ms Hartley said.

“While many customers ultimately complete their payment after receiving an alert, we know they are stopping and pausing because we see around $220,000 worth of payments abandoned daily.”

The scam websites that ASIC has taken down include fake investment platforms, crypto-asset scam websites, and imposter scam websites where legitimate financial service businesses are being impersonated.

Ms Court said while Imposter scams are often difficult to detect, consumers could take steps to protect themselves and their savings.

“If you are unsure whether you are dealing with the legitimate business, contact the business by using the publicly listed phone number,” she said.

“All Australians should approach websites that promote guaranteed, quick, low-risk and very high-returns with caution. If an investment opportunity seems too good to be true, it almost certainly is.”

In July last year, Australian Competition & Consumer Commission chair Gina Cass-Gottlieb called for a “three-pronged approach” to halt cyber crime.

“First, we need to stop scammers reaching consumers by disrupting the means by which they contact would-be victims – whether through phone calls, SMS, email, social media,” she said.

“Second, we need to better educate consumers so that if a scam contact makes it through to them, they are able to recognise it as a scam. Finally, we need measures in place so that if a consumer is convinced to attempt to transfer funds to a scammer, there is a safety net there to prevent this from happening.”

Typical warning signs include a website using ASIC’s name and branding to give a false appearance of legitimacy – ASIC says it will never endorse investments products or platforms; using statements that downplay investment risk or offer very high investment returns; and a lack of a specific business address.

Another sign of a scam includes being asked to pay more money to access funds you have already invested. Australians are urged to report suspicious websites to scamwatch.gov.au.

Originally published as ASIC steps up assault on scammers, gaining new powers to shut down websites