ASIC caught up in social media scam

ASIC scams social media online trading

6 June 2024
| By Laura Dew |
image
image
expand image

The corporate regulator has issued a warning that its logo is being misused to perpetuate a social media scam promoting fake investment.

ASIC said it received a number of reports about social media advertisements that promote a “Stock Trading Master Class” and display the ASIC logo. They also stated the class is sponsored or endorsed by ASIC which is untrue.

When consumers click on the ad, they are subsequently taken to a private WhatsApp group. The group is called Lonton Wealth Management, an unlicensed entity that ASIC placed on its alert list last month. 

There are also two further examples of ASIC being misused in the form of an impersonation Telegram account asking investors for money and in the form of cold calls attempting to engage consumers in obtaining a refund on their investment. 

“ASIC is also aware of repeated cold calls from persons claiming to be from ASIC attempting to engage with consumers in obtaining a refund on an investment. This is a concern as ASIC does not cold call consumers about investments or refunds on investments.

“In addition, ASIC has also become aware of an impersonation account on Telegram, pretending to be an ASIC social media account. The operators of this account are asking investors for money to release their investment funds held in Australia.”

ASIC flagged to consumers: 

  • ASIC does not maintain a Telegram account.
  • ASIC will never ask for money as upfront taxes or payments to release investments held in Australia.
  • Entities that engage with consumers through private social media groups may be attempting to conceal their true identity.

Anyone who receives a message like this is reminded to check criteria such as whether the entity claims to be “supported” or “sponsored” by ASIC, whether a course is endorsed by ASIC, whether it refers to user to a third-party site or it directs them to a social media site, especially if the profile looks to be created recently.

Any fake profiles can be reported to the platform and to Australia’s Scamwatch. ASIC said it is actively working with the National Anti-Scam Centre and social media platforms to remove the advertisements.

According to Scamwatch, some $476 million was lost to scams in 2023, and it received 301, 765 reports from consumers. More than half of this, $291 million, was lost via investment scams.

Read more about:

AUTHOR

Submitted by Ian Hanna on Tue, 2024-07-30 12:17

Has Lonton Wealth Management been proven to be a scam ?

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 1 hour ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 23 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 2 hours ago