investment scams

Australia's financial regulatory authority, the Australian Securities and Investments Commission (ASIC), has issued a cautionary note about a rise in investment scams that exploit messaging apps and social media, particularly targeting younger individuals. These scams often start with enticing ads on social media promoting stock trading tips, leading victims to messaging apps where they are misled into thinking they are receiving legitimate investment advice from impersonated figures. Victims are then directed to counterfeit digital asset trading platforms, resulting in lost funds and additional withdrawal fees. Research from Moneysmart reveals that 23% of Australians aged 18 to 28 own digital assets, with 66% taking a speculative approach to investing, and 29% influenced by social media personalities. Additionally, 72% of Gen Z respondents encountered social media ads for digital assets, and 41% were approached to invest in cryptocurrencies. ASIC has proposed measures to mitigate risks, including avoiding sharing personal information from social media, verifying investment platforms through AUSTRAC, and acting quickly if something seems suspicious. The Australian Parliament passed a digital asset framework bill in April requiring digital asset platforms to obtain an Australian Financial Services License (AFSL) within a year to comply with new regulations.