The National Anti-Scam Centre has taken a significant step in addressing the increasing issue of investment scams in Australia with a fusion cell. These scams have been causing losses of over $1 billion annually.
To tackle this problem, the Centre has established an investment scam fusion cell. This is led by the ACCC and ASIC, featuring representatives from banks, the telecommunications industry, and digital platforms. This fusion cell, the first coordinated by the National Anti-Scam Centre, aims to identify strategies for disrupting investment scams like scam call spikes and minimising losses victims incur. Read on to learn more.
Fusion cell to combat investment scams
Fusion cells are temporary task forces that leverage the expertise of both the government and private sectors to promptly address urgent problems. The National Anti-Scam Centre plans to coordinate several fusion cells involving different participants to target specific types of scams.
ACCC Deputy Chair Catriona Lowe emphasises the devastating impact of investment scams, causing financial losses and emotional distress for victims. Therefore, the National Anti-Scam Centre has prioritised investment scam disruption as its initial fusion cell, facilitating coordinated action by financial institutions, telecommunications companies, and digital platforms to stop scammers.
By fostering collaboration between regulators and private entities, ASIC Deputy Chair Sarah Court believes that the fusion cell announced by the National Anti-Scam Centre represents a crucial step towards safeguarding Australians against harmful investment scams. She expressed how she looks forward to sharing ASIC’s expertise on investment scams with the Centre.
Key objectives of the investment scam fusion cell
The investment scam fusion cell will operate for six months, with the National Anti-Scam Centre providing public reports on its outcomes.
The fusion cell aims to:
- Intervene early to disrupt investment scams, preventing scammers from reaching potential victims.
- Remove investment scam websites from the internet.
- Share information regarding investment scam activities to assist the private sector in taking effective disruption measures.
- Provide the public with essential information to avoid falling victim to investment scams.
- Identify intelligence related to investment scams to be referred to law enforcement agencies in Australia and overseas.
Protecting yourself from investment scams
It is crucial to be cautious of offers that promise easy money or significant returns without proper risk assessment. ASIC’s Moneysmart website offers comprehensive guidance on reducing the risk of investment scams.
Practical checks for investors
Before making any investment, Australian investors should perform simple yet crucial checks. This is to minimise the risk of falling prey to scams:
- Verify if a prospectus relates to a recently registered offer by checking ASIC’s Offer Notice Board.
- Ensure that any party promoting or issuing the financial product is licensed. This is done by a licensee by checking ASIC’s Australian financial services licensees register.
- Consult the investor alerts provided by the International Organization of Securities Commissions (IOSCO) to ensure the company or website has yet to be flagged.
Seeking help and reporting scams
Contact your bank immediately if you suspect it is involved in an investment scam like card fraud or have experienced cybercrime resulting in financial losses online. Additionally, you can report such incidents to the police via ReportCyber.
IDCARE and cyber support service can assist if you require support in recovering from a scam.
For further information and resources on scams, including reporting them, visit the Scamwatch website at scamwatch.gov.au. In case of emotional distress caused by scams, Lifeline offers crisis support at 13 11 14, and an online chat service is available between 7 pm and midnight.