Australia is tightening its grip on online fraudsters. The financial regulator ASIC has expanded its powers to cover social media ads, responding to a sharp rise in cryptocurrency-related scams.

14,000 fraudulent sites taken down

The Australian Securities and Investments Commission (ASIC) was granted powers to block fraudulent websites two years ago. Since then, it has shut down more than 14,000 scam sites – averaging about 130 per week. In the past six months alone, around 3,000 scams were linked directly to cryptocurrencies.

According to ASIC, the most common fraud tactics include:

🔹 AI-washing (misuse of artificial intelligence claims),

🔹 template-based fraudulent sites,

🔹 fake news articles,

🔹 misuse of trusted third-party brands,

🔹 deepfakes and other AI-generated images.

Artificial intelligence is making scams harder to detect, the commission warned, as people struggle to distinguish what is real from what is fake.

“Traditional tools are no longer enough,” ASIC warns

ASIC Deputy Chair Sarah Court stressed that conventional measures – such as investigations, lawsuits, and administrative enforcement – are no longer sufficient to fight increasingly sophisticated scams. The ability to instantly take down websites and now also social media ads is a vital step to protect Australians from major financial harm.

Court urged the public to remain cautious. Investment scams remain the largest source of financial losses, totaling $945 million in 2024, despite a significant drop from the record $3.1 billion in 2022. Fraudsters, however, continue to adapt, and vigilance is still essential.

ASIC’s advice to investors:

🔹 always verify if a company holds a valid license

🔹 don’t trust “AI-generated safety guarantees”

🔹 avoid offers coming through WhatsApp or Telegram

🔹 take your time before making any investment decision

Millions in fines issued

Beyond website takedowns, ASIC has imposed hefty penalties. In the first half of 2025 alone, fines totaled $57.5 million.

Key cases include:

  • Firstmac Limited – fined $8 million for breaches of distribution rules,

  • Allianz Australia Insurance & AWP Australia Pty Ltd – fined $16.8 million for misleading travel insurance information published between 2016–2018,

  • HCF Life Insurance – fined $750,000 and required to issue corrective disclosures,

  • Choosi – sued in June 2025 for false claims of comparing multiple funeral and life insurers.

A tougher stance on crypto scams

By extending enforcement to social media ads, ASIC aims to prevent fraudsters from luring victims through platforms where crypto promotions are highly active. In a country where cryptocurrency adoption is growing rapidly, this is a crucial step to strengthen consumer protection.

According to ASIC, the fight against online scams is a never-ending race: while regulators block thousands of sites, fraudsters constantly find new ways to exploit technology – and people’s trust – for profit.

#Australia , #asic , #Cryptoscam , #CryptoFraud , #CryptoSecurity

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