ASIC Eliminates 14,000 Fraudulent Websites Over Two Years, With Cryptocurrency Scams Representing 20% of Removals

The Australian Securities and Investments Commission (ASIC) has eliminated over 14,000 investment scam and phishing websites since July 2023, with cryptocurrency fraud representing around 3,015 of these removals, or 20% of the total.

ASIC is consistently dismantling an average of 130 malicious sites each week while enhancing its capabilities to encompass social media advertisements in its battle against online investment fraud.

Scammers Attacking from All Angles

The regulator’s most recent enforcement update highlights advanced tactics employed by scammers, including AI washing schemes that falsely claim trading bots can generate passive income, polished website templates that facilitate rapid copycat launches, and fabricated news articles featuring AI-generated endorsements from celebrities.

Notably, cloaking techniques are increasingly being utilized. This method allows scammers to modify the content displayed based on the target’s location and device type, while third-party integrations lend a false sense of legitimacy.

ASIC achieved notable enforcement results during the first half of 2025, which included $57.5 million in civil penalties imposed by courts, six criminal convictions, and the initiation of 345 new investigations.

ASIC enforcement and regulatory update January to July 2025 Source: ASIC

The agency shut down 95 companies associated with international “pig butchering” schemes after receiving nearly 1,500 victim claims amounting to $35.8 million in losses across 14 nations.

Systematic Enforcement Campaign Targets Multi-Billion Dollar Scam Economy

Investment scams continue to be the predominant type of fraud affecting Australians, with victims losing $945 million in 2024, even as overall scam losses decreased by 25.9% from the peak of $3.1 billion in 2022.

ASIC’s enforcement priorities concentrate on misconduct that exploits superannuation savings, business models that evade consumer credit protections, and greenwashing related to environmental sustainability claims.

The regulator secured substantial penalties against financial institutions, including a $27 million fine against AustralianSuper for failing to consolidate member accounts for 90,700 members over a ten-year period.

Active Super incurred a $10.5 million penalty for greenwashing violations after investing in securities it claimed had been eliminated by environmental screens.

ASIC’s efforts to disrupt scams include coordinating the removal of over 130 malicious websites weekly, adding 500 new unlicensed entries to its Moneysmart Investor Alert List, and issuing consumer warnings regarding specific fraud schemes.

The agency charged Mormarkets Pty Ltd director Brendan Gunn for dealing with suspected proceeds from investment scams.

Earlier this year, Federal Court Justice Angus Stewart approved winding up orders for 95 fraudulent companies, describing the evidence as “overwhelming” after discovering that businesses were registered using false information.

Australian authorities have shut down 95 fraudulent firms linked to cryptocurrency investment and romance scams.#Australia #Scamhttps://t.co/moCheclWr4

— Cryptonews.com (@cryptonews) April 8, 2025

Joint liquidators found that only three companies possessed assets while recommending immediate deregistration for 92 others.

The enforcement initiative also encompasses traditional financial misconduct, with National Australia Bank paying $15.5 million for failing to assist 345 customers seeking hardship support.

Allianz Australia and AWP Australia received a combined total of $16.8 million in fines for misleading statements regarding travel insurance.

Crypto Compliance Crackdown Expands Across Multiple Agencies

Australian authorities have heightened oversight of cryptocurrency through coordinated enforcement actions targeting non-compliant exchanges and money laundering networks.

Just today, AUSTRAC mandated Binance Australia to appoint external auditors after uncovering serious concerns related to anti-money laundering and counter-terrorism financing, providing the exchange with 28 days to propose candidates.

@binance faces mandatory audit in Australia over serious AML and terror financing concerns amid nationwide enforcement campaign.#Binance #Australiahttps://t.co/lVsofJm6gC

— Cryptonews.com (@cryptonews) August 22, 2025

This action follows AUSTRAC’s broader initiative targeting 13 remittance and digital currency exchange providers over compliance issues while investigating 50 additional operators.

The agency canceled, suspended, or denied renewals for nine providers that failed to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act requirements.

Similarly, AUSTRAC reached out to 427 registered digital currency exchange providers that appeared inactive, warning them of the risk of deregistration if they do not withdraw voluntarily.

Many platforms have ceased operations but remain listed, potentially exposing the system to criminal exploitation by bad actors seeking legitimacy.

The agency intends to introduce a publicly searchable register that will allow consumers to verify whether crypto exchanges are officially registered and under regulatory oversight.

This initiative aims to address rising concerns about criminals taking advantage of legitimate registrations to operate fraudulent platforms.

Earlier this month, ASIC charged former barrister Dimitrios Podaridis along with three other individuals for facilitating investment scams, converting victim funds into cryptocurrency between January and July 2021.

The scheme employed fake comparison websites and professional documentation that imitated major financial services providers.

AUSTRAC has also formed a crypto task force to address violations by crypto ATM operators across Australia’s 1,600 machines, the highest concentration in the Asia-Pacific region.

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