ASIC warning on increase in investment fraud
Incidences of investment fraud appear to have increased over the past nine months, according to the Australian Securities and Investments Commission (ASIC).
What is more, the companies behind that fraud have been predominantly based on the Gold Coast - albeit, often registered elsewhere in Australia.
ASIC and State and Territory police services have issued a warning about the increased incidences of fraud, warning that investors are being targeted all over the company.
It did so at the same time as obtaining orders against a Gold Coast company for operating an unlicensed financial services business.
According to ASIC, the fraudsters usually contact their victims by telephone and convince them to invest in schemes involving the purchase of shares or investment in index funds or currency trading schemes.
It said once an investment was made, the fraudsters provided access to a website that showed projected returns, however those returns were completely fictitious.
"These fraudsters operate without Australian financial services (AFS) licences and use false addresses and phone lines routed often to another address. In the vast majority of cases, investors lose all of their money," the ASIC warning said.
AUTHOR
Mike Taylor
Recommended for you
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
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 for investments.
Inefficient data processes and systems mean advisers are spending over half of their time on product implementation and administration at the expense of clients, according to research.
With the regulator announcing its enforcement focus for 2025 last week, law firm Hall & Wilcox examines the areas which have dropped down the list in priority for the regulator.
