ASIC Secures Court Order To Shutdown 95 ‘Online Investment Companies’ Targeting Fraudulent Activities

Australian Securities and Investments Commission (ASIC) has announced that the Federal Court has granted its application to dissolve 95 companies linked to online investment and romance baiting scams, often referred to as ‘pig butchering.’ The Court’s approval was based on just and equitable grounds after ASIC discovered that most of the companies had been incorporated with fraudulent information. 

In its ruling, the Court agreed with ASIC’s assessment that there was a lack of confidence in the management and operations of the companies, with Justice Stewart describing the case for winding them up as “overwhelming.” Many of these companies were also connected to websites and applications, which ASIC suspects were involved in facilitating scam activities by deceiving consumers into making investments in fake foreign exchange, digital assets, or commodities trading. As part of its efforts, ASIC has worked to have several related websites and applications taken offline.

ASIC Deputy Chair Highlights Efforts To Combat Scams And Protect Consumers From Fraudulent Online Activities

ASIC Deputy Chair Sarah Court stated that ASIC believes many of these companies were established with the intention of creating a false appearance of credibility by claiming to offer legitimate services. She added that the action taken had shut down these companies and protected consumers from entities lacking proper management or control, including those linked to potentially fraudulent activities.

Ms. Court explained that scammers were employing more sophisticated methods to deceive their victims, such as creating fake companies and developing professional-looking websites and applications to make their schemes appear legitimate. She also noted that ASIC suspects that, in certain instances, the companies were set up using stolen identities.

The ASIC Deputy Chair stated that scammers would use every tool at their disposal to steal people’s money and personal information. She emphasized that ASIC actively works to thwart their efforts, including prosecuting those who facilitate such conduct and taking down more than 130 scam websites each week. She also highlighted that ASIC’s ongoing efforts to improve the registry system would help prevent similar activities in the future.

The agency also cautioned consumers to stay alert when interacting with online investment websites and mobile applications, as the risks of scams and identity theft continue to be a significant concern.

The recent winding-up action is part of ASIC’s continued efforts to address investment scams. The agency is taking down approximately 130 scam websites each week, and according to the latest Enforcement and Regulatory Update, over 10,000 sites have been removed so far. This includes 7,227 fraudulent investment platform scams, 1,564 phishing scam links, and 1,257 cryptocurrency investment-related scams.