Beware: This Regulator's Impersonators On the Rise

The Australian Securities and Investments Commission (ASIC) has issued a warning to consumers regarding scammers impersonating its representatives and demanding payments for the release of funds or assets. This follows reports of individuals receiving fraudulent emails and phone calls.

According to ASIC, these scams fall under the category of "recovery scams," with a recent instance involving demands for payments in US dollars. "ASIC is aware of a recent example where requests were made for payments in US dollars to release an investor’s funds," the regulator stated.

ASIC clarified its stance on financial transactions, emphasizing, "ASIC will never ask for a payment in any currency to enable funds or assets to be released. ASIC will also not require or accept payments in digital or crypto assets (including stablecoins), whether that is to or from your crypto asset wallet or to an account at a digital asset exchange."

The regulator also highlighted its operational procedures, noting, "ASIC is Australia’s financial services regulator - it does not allow the reproduction or use of its logo by a third-party entity or guarantee any of its services."

To verify the legitimacy of communications, ASIC advises consumers to:

• Check if an organization is licensed on the ASIC Professional Registers.

• Confirm any unsolicited contact by hanging up and calling the number listed on the ASIC website.

• Verify emails originate from @asic.gov.au addresses.

• Note that ASIC calls will originate from the +61 country code.

• ​"If asked, an ASIC employee will provide you with an email from their asic.gov.au email address to confirm the legitimacy of the contact."

This warning comes amidst ongoing efforts by ASIC to combat financial scams. The regulator has recently taken action against numerous fraudulent websites, having removed 10,240 investment scam websites by the end of the previous month.

The issue of regulatory impersonation is not unique to Australia. Similar scams have been reported by other regulatory bodies, including the Cyprus Securities and Exchange Commission (CySEC)​.

According to data from the Australian Competition and Consumer Commission (ACCC), Australians lost AU$2.74 billion to financial fraud and scams, although this figure represents a 13.1% decrease from the previous year.