ASIC’s Crypto Crackdown: One in Five Sites a Scam

The Australian corporate regulator reports a significant crackdown on online fraud, disabling more than 14,000 deceptive websites and phishing operations in the last two years. Crypto-related scams accounted for approximately one-fifth of the total number of sites taken down.

According to ASIC, the agency is extending its efforts to combat investment scams by targeting fraudulent ads on social media, aiming to shield Australian investors from increasingly sophisticated online deceptions. The agency detailed the removal of roughly 3,015 websites relating to cryptocurrency scams.

Bridget Nichols, the Chief Commercial Officer at Monochrome, an Australian crypto asset management firm, suggested that “ASIC could enhance its role by distinguishing between unregulated trading platforms, where investors face higher scam risks, and regulated investment options.” Nichols spoke with Decrypt on the subject.

The regulatory body stated it is currently removing an average of 130 malicious sites each week. The newly expanded capabilities aim to disrupt scam operations that use platforms like Facebook and Instagram to lure victims to fake investment opportunities.

Nichols further explained that regulated financial instruments offer “standard investor protections,” including clear disclosures, secure custody protocols, and proper conflict management procedures.

Investment schemes remain the most financially harmful form of fraud for Australians. Losses reported to these scams have amounted to $945 million in 2024 alone.

ASIC Deputy Chair Sarah Court emphasized the agency’s commitment, saying, “Extending our investment scam takedown capabilities to include social media advertising will provide greater safeguards for Australian consumers.” She made this comment in an official press release.

ASIC has identified five significant trends observed in online investment fraud over the past six months, including:

“AI washing” is a growing trend where scammers make false claims about their trading bots using artificial intelligence to generate guaranteed profits. This approach takes advantage of the general public’s interest in AI technologies.

Scammers are using professionally designed website templates and third-party tools like live trading charts. They also circulate fake news featuring AI-generated endorsements from celebrities. To avoid detection, they employ “cloaking” techniques.

According to Court, “ASIC’s established strategies, like investigations, legal action, and administrative measures, are valuable. However, these strategies alone cannot effectively combat the rise of online scams.”

The increased enforcement relating to crypto occurs as these assets are facing greater regulatory examination within Australia.

Earlier in the month, ASIC charged four men from Victoria, including a former lawyer, for offenses related to money laundering. They were allegedly involved in moving funds from large-scale investment scams into cryptocurrency exchanges.

Last month, the Australian financial intelligence agency identified crypto as a significant threat in its crackdown on financial crime, referring to it as the “most extensive revision of Australia’s anti-money laundering regulations in a generation.”

Mitchell Amador, the CEO of Immunefi, noted that security vulnerabilities are a continuing problem within the broader crypto space. Speaking to Decrypt, he said, “Looking at just the first half of this year, we are on pace to lose approximately 3.6–4% of the entire sector’s assets to hacks, which is shocking.”