Scams on the rise

ASIC warren day scams covid-19

24 June 2020
| By Chris Dastoor |
image
image
expand image

The Australian Securities and Investments Commission (ASIC) has seen a rise in the number of investment scam reports from consumers and investors during the COVID-19 pandemic.

Reports of misconduct received by ASIC from March to May, 2020, were up 20% compared to the same period last year.

ASIC said that although reports from the public provided the regulator with valuable intelligence, scammers were difficult to catch and lost money was difficult to recover, especially if the scammers operated outside the country.

ASIC said scammers often:

  • Present a range of investment offers – from modest returns to high returns – that sound safer than they were;
  • Made persistent requests to continue investing despite no evidence of actual returns on initial investments;
  • Display fake endorsements from celebrities or government agencies, including ASIC;
  • Request money be paid to a person or company into multiple or constantly changing bank accounts; and
  • Lure someone via a romance site and direct them to send money or invest in crypto-assets or forex trading.

Warren Day, ASIC executive director for assessment and intelligence, said economic uncertainty due to the pandemic had created a “perfect storm”.

“Australians are at risk of being scammed and losing money, and scammers are using age-old tactics in new and sophisticated ways to target people,” Day said.

“ASIC is particularly concerned about the risk to consumers and investors losing money when buying into fake crypto-assets.

“Most crypto-asset investment opportunities reported to ASIC appear to be outright scams and there is no actual underlying investment.”

If you or someone you know had been scammed, you can lodge a report of misconduct with ASIC.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

7 hours ago

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

4 days 12 hours 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

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 ...

3 days 10 hours ago

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

2 days 13 hours ago