After the Cyprus Securities and Exchange Commission (CySEC), fraudsters are now impersonating representatives of the Australian financial market regulator. Today (Wednesday), the Australian Securities and Investments Commission (ASIC) warned against scammers pretending to be from the regulator, asking potential victims “to provide a payment to enable funds or assets to be released.”

Target of Recovery Scams

The warning came as the Aussie regulator pointed out that consumers have received emails and phone calls from scammers impersonating regulatory representatives. ASIC highlighted that such tactics fall under “recovery scams.”

“ASIC is aware of a recent example where requests were made for payments in US dollars to release an investor’s funds,” the regulator noted. It further pointed out that it does not collect payments to enable the release of funds or assets.

“ASIC will never ask for a payment in any currency to enable funds or assets to be released,” the regulator added. “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.”

While ASIC recently warned against regulatory impersonators, its counterpart in Cyprus has been facing this issue for years. CySEC has issued multiple warnings against impersonators of its staff and representatives. Many even target distressed consumers on platforms like Trustpilot, asking for payments in exchange for the recovery of funds from closed platforms.

You may also like: “Trustpilot’s Reputation Casino: Are Brokers and Props Playing or Getting Played?”

Australia’s Fight Against Scams

ASIC oversees the wider financial market in Australia, including contracts for difference (CFD) brokers. It stressed that “it does not allow the reproduction or use of its logo by a third-party entity or guarantee any of its services.”

Meanwhile, the Aussie regulator has ramped up its actions against shady platforms and websites. By the end of last month, it had removed 10,240 investment scam websites.

According to data from the Australian Competition and Consumer Commission (ACCC), Aussies lost AU$2.74 billion to financial fraud and scams. Although the figure was staggering, it decreased by 13.1 per cent in a year.

However, financial scams are not confined to Australia; they are a global issue. Malaysian authorities recently revealed that forex broker TrumphFX siphoned about US$5.3 million from 72 victims in the country.

Source: Finance Magnates