The Australian Securities and Investments Commission (ASIC) has successfully obtained Federal Court orders to wind up 95 companies suspected of involvement in sophisticated online investment and romance baiting scams, commonly known as “pig butchering” schemes.
ASIC Deputy Chair Sarah Court warned consumers to remain vigilant when engaging with online investment websites and mobile applications, describing the scam operations as “hydra-like” – when one is shut down, two more emerge in its place.
“Scammers will use every tool they can think of to steal people’s money and personal information,” Court said. “ASIC takes action to frustrate their efforts, including by prosecuting those that help facilitate their conduct and taking down over 130 scam websites each week.”
The Federal Court granted ASIC’s application after the regulator discovered most of the companies had been incorporated using false information. Justice Stewart described the case for winding up each company as “overwhelming,” citing a justifiable lack of confidence in their conduct and management.
ASIC believes many of these companies were established to provide a “veneer of credibility” by purporting to offer genuine services. The regulator has taken steps to remove numerous related websites and applications that allegedly facilitated scam activity by tricking consumers into making investments in fraudulent foreign exchange, digital assets, or commodities trading platforms.
In some cases, ASIC suspects the companies were incorporated using stolen identities, highlighting the increasingly sophisticated techniques employed by scammers. These operations often create professional-looking websites and applications designed to lull victims into a false sense of security.
The action represents the latest effort in ASIC’s ongoing battle against investment scams. The regulator reports removing approximately 130 scam websites weekly, with more than 10,000 sites taken down to date – including 7,227 fake investment platforms, 1,564 phishing scam hyperlinks, and 1,257 cryptocurrency investment scams.