ASIC Wins Court Approval to Shut Down 95 'Online Investment Firms' Targeting Fraudulent Activities

The Australian Securities and Investments Commission (ASIC) recently confirmed that the Federal Court has approved its application to dissolve 95 firms linked to online investment and romance scams, frequently referred to as 'pig butchering.' The court's decision was made based on fair and equitable reasoning, especially after ASIC found that many of these firms had been set up using fraudulent details. In the Court's decision, it concurred with ASIC's findings that there was a significant lack of trust in how these companies were being operated, with Justice Stewart calling the evidence for their closure 'overwhelming.' Several companies were also found to be connected to websites and apps that ASIC believes were designed to aid in scamming individuals into investing in sham foreign exchange, digital innovations, or commodity trades. As a result of these findings, ASIC has actively pursued the removal of numerous related websites and applications.

ASIC's Deputy Chair Emphasizes Ongoing Initiatives Against Scams and the Protection of Consumers from Online Fraudulent Activities

ASIC's Deputy Chair, Sarah Court, highlighted the Commission's belief that many of these entities were established with the express purpose of creating a deceptive façade of legitimacy by falsely presenting real services. She mentioned that the measures taken successfully eliminated these entities and guarded consumers against those lacking genuine oversight and control, including those potentially involved in fraud.

Ms. Court pointed out that scammers have been refining their tactics to swindle victims by crafting fake businesses and launching polished websites and applications to make their schemes seem credible. Furthermore, she noted that in some cases, these companies might have been established using stolen identities.

The Deputy Chair of ASIC warned that scammers are relentless in their pursuit of individuals' money and personal information. She stressed ASIC's commitment to counteracting their schemes, which includes prosecuting those who enable such illegal activities and taking down an average of over 130 scam sites weekly. She also emphasized that ongoing improvements to the registry system would mitigate future risks of this nature.

The agency has also alerted the public to be cautious when dealing with online investment platforms and mobile apps, as the threats of scams and identity fraud remain significant concerns.

The recent action taken to wind up these companies is part of ASIC's broader strategy to combat investment fraud. The agency is actively shutting down around 130 scam websites every week, and according to its latest Enforcement and Regulatory Update, it has taken down over 10,000 fraudulent sites to date. This includes 7,227 scams related to investment platforms, 1,564 phishing scam links, and 1,257 scams associated with cryptocurrency investments. scams Please remember that the information contained on this page should not be seen as legal, tax, investment, financial advice, or similar. It's crucial to only invest what you can afford to lose and to seek independent counsel if you have uncertainties. For more details, please refer to the issuer’s or advertiser’s terms and conditions, as well as their support pages. MetaversePost is dedicated to providing accurate and impartial reporting, but remember that market circumstances can change without prior notice.

Alisa, a passionate journalist at Cryptocurrencylistings, focuses on cryptocurrency, zero-knowledge proofs, investments, and the ever-expanding Web3 landscape. With her sharp insight into emerging trends and technologies, she offers in-depth coverage that aims to inform and engage readers navigating the shifting terrain of digital finance.