ASIC Moves to Silence Scams with Social Media Ad Crackdown

ASIC is set to expand its takedown efforts to include social media advertisements, as part of its ongoing measures to combat the growing threat of online investment scams. The Australian Securities and Investments Commission (ASIC) has already taken down over 14,000 scam websites and phishing links since July 2023, removing an average of 130 malicious sites weekly. The regulator’s new initiative will now extend to social media ads, aiming to stop scammers from directing users to fraudulent investment platforms [1].

ASIC Deputy Chair Sarah Court emphasized the importance of the new capability in protecting Australian consumers. “Expanding our investment scam takedown capability to social media ads will help safeguard Australians,” Court stated. The move aligns with ASIC’s broader strategy to monitor evolving scam trends and respond swiftly to protect the public from financial exploitation [2].

The types of scams ASIC has been targeting include those that misuse artificial intelligence (AI) and deepfake technologies to generate fake trading bots, celebrity endorsements, and investment opportunities. Scammers have also been embedding legitimate-looking third-party content—such as live trading charts and chatbots—into fraudulent websites to make them appear credible. Additionally, some scams use cloaking techniques to display content based on the user's location or device type to avoid detection [1].

The financial impact of these scams remains significant. According to the National Anti-Scam Centre, Australians lost $945 million to investment scams in 2024. While overall scam losses have decreased by 25.9% since 2022, when losses reached $3.1 billion, investment scams continue to be the most costly type of fraud [1]. The trend is also evident at the state level, with Western Australia reporting over $30 million in investment scam losses since the beginning of 2024. Notably, a single scam involving a fake celebrity endorsement resulted in a $10 million loss for one victim [4].

ASIC’s approach is not unique. In Italy, the Consob regulator has already extended its takedown powers to social media ads. Meanwhile, regulators in the UK, Cyprus, and Spain primarily issue warnings rather than taking direct action. The European Securities and Markets Authority (ESMA) has also reached out to major social media and digital platforms—such as Meta, X, and TikTok—urging them to implement stronger measures against the promotion of unauthorized financial services [2].

Consumers are being advised to remain vigilant and scrutinize any investment opportunities that seem too good to be true. ASIC recommends that Australians stop and think before investing, verify the legitimacy of the company and the investment itself, and never feel pressured into making decisions. Scammers often use testimonials, celebrity endorsements, and professional-looking websites to create a false sense of legitimacy.ASIC’s enforcement efforts highlight the evolving landscape of financial fraud, where scammers leverage cutting-edge technology and social engineering tactics to exploit trust and financial desperation [1].

Source: [1] 25-171MR Scammers on notice as ASIC steps up action to ... (https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2025-releases/25-171mr-scammers-on-notice-as-asic-steps-up-action-to-protect-consumers-from-online-investment-scams/) [2] Australia Will Now Take Down Social Media Ads Promoting ... (https://www.financemagnates.com/forex/australia-will-now-take-down-social-media-ads-promoting-investment-scams/) [3] Australian Regulator Removes 3000 Crypto Scams (https://cointelegraph.com/news/australia-regulator-crypto-investment-scam-update) [4] Celebrity fakes and crypto cons drive $30m loss ... (https://consumerprotection.wa.gov.au/announcements/celebrity-fakes-and-crypto-cons-drive-30m-loss-investment-scams)