ASIC Steps Up Takedown War: Bots, Phishing, and AI Scams Under Fire

Australia’s financial regulator is set to expand its efforts to combat online investment fraud, particularly in the cryptocurrency sector, after removing over 14,000 scam websites and phishing links since July 2023. Of these, approximately 3,015 were related to crypto schemes. The Australian Securities and Investments Commission (ASIC) announced that it will now extend its takedown capability to include social media advertisements, aiming to curb the rising sophistication of fraudulent campaigns on platforms like Facebook and Instagram [1].

The move follows a growing trend of scammers using advanced tactics to deceive investors, including AI-driven trading bot claims, cloaking technology, and fake news articles with AI-generated celebrity endorsements. These tactics are designed to create the illusion of legitimacy and trust. In response, ASIC has noted that scammers are increasingly leveraging third-party tools, such as live trading charts and chatbots, to make their websites appear credible and professional. The regulator emphasized that these schemes often exploit public interest in cutting-edge technologies like AI, using them to mask fraudulent operations [2].

ASIC’s Deputy Chair, Sarah Court, highlighted the importance of expanding the takedown initiative to social media ads, noting that traditional enforcement methods—such as investigations and court actions—are insufficient to address the scale and speed of these scams. “We are monitoring the latest trends and acting to protect Australians from those who try to steal from them,” Court said. The regulator currently removes an average of 130 malicious sites per week, a slight decline from 140 in 2024 [3].

Investment scams continue to be the most financially damaging type of fraud in the country, with Australians losing $945 million to such schemes in 2024 alone. Despite a 25.9% reduction in overall scam losses compared to the peak in 2022, when losses reached $3.1 billion, the threat remains significant. The National Anti-Scam Centre has reported that victims are often targeted through high-pressure tactics, unverified testimonials, and promises of guaranteed returns. These are red flags that consumers are urged to recognize and avoid [2].

ASIC has also identified key trends in the evolution of online investment fraud, including the use of scam website templates, which allow fraudsters to launch convincing fake sites rapidly. Additionally, scammers are embedding legitimate-looking content into their websites to enhance their credibility. The regulator has stressed the importance of public awareness and vigilance, advising investors to check whether a company is licensed by ASIC, avoid unsolicited investment opportunities, and scrutinize any claims of AI-generated returns or guaranteed profits [1].

The regulator’s expanded efforts are part of a broader crackdown on crypto-related fraud. Earlier this year, ASIC charged individuals involved in moving scam proceeds to crypto exchanges. Additionally, Australian law enforcement agencies have targeted crypto ATMs, which have been linked to online scams, including “pig butchering” schemes. The country has the world’s third-largest number of crypto ATMs, and authorities have introduced new rules and transaction limits to mitigate the risks associated with these machines [3].

Source:

[1] 25-171MR Scammers on notice as ASIC steps up action to protect consumers from online investment scams (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] Australian Regulator Removes 3000 Crypto Scams (https://cointelegraph.com/news/australia-regulator-crypto-investment-scam-update)

[3] Crypto Scam Sites Make Up a Fifth of ASIC's Two-Year Takedown Effort (https://finance.yahoo.com/news/crypto-scam-sites-fifth-asic-054614868.html)