Australia’s corporate regulator has revealed that more than 14,000 scam and phishing websites have been removed over the past two years, with around 3,015 of them linked to cryptocurrency.

The Australian Securities and Investments Commission (ASIC) announced the expansion of its crackdown on online fraud, now extending beyond websites to also include scam-linked social media advertisements.

The move comes as investment scams continue to inflict heavy financial losses on Australians, who lost $945 million to such schemes in 2024 alone.

According to ASIC, crypto-related schemes make up nearly one-fifth of the total scams removed since 2022.

The regulator currently takes down about 130 malicious sites each week, disrupting networks of scammers who use platforms such as Facebook and Instagram to funnel victims into fraudulent investment traps.

Earlier this month, four men from Victoria, including a former barrister, were charged with money laundering offences tied to large-scale scams where proceeds were moved into crypto exchanges.

Australia’s financial intelligence agency also recently named crypto as a top threat in financial crime enforcement.

It described the new measures as part of the “most ambitious overhaul” of the nation’s anti-money laundering laws in decades.

ASIC has identified several emerging patterns in recent fraud activity.

One of the most prominent is “AI washing,” where scammers falsely claim to use artificial intelligence-driven bots to generate guaranteed investment returns.

This tactic leverages growing public interest in AI technologies.

Fraudsters have also been seen using slick website templates, third-party tools such as live trading charts, and fake news articles featuring AI-generated celebrity endorsements.

Cloaking tactics—where scam sites appear legitimate to regulators but deceptive to users—are another layer scammers employ to avoid detection.

Security risks extend beyond fraudulent platforms. Mitchell Amador, CEO of blockchain security firm Immunefi, said losses to hacks in the crypto sector remain high.

He noted that in the first half of 2024 alone, the industry was on track to lose around 3.6–4% of its total assets to hacks.

ASIC maintains that regulated financial instruments continue to provide standard investor protections, including custody rules, disclosures, and conflict management measures—unlike unregulated trading platforms, where consumers face higher exposure to scams.

While ASIC continues to rely on traditional tools such as investigations, court cases, and administrative measures, officials emphasised that these alone cannot counter the scale of digital fraud.

The expansion of scam takedown powers to cover social media advertisements is intended to close a critical gap, targeting the points where victims are often first approached.

The crypto enforcement push comes as the country faces rising global attention on its financial crime measures.

By focusing on both scam removals and expanded regulation, Australia aims to reduce exposure to online fraud that is increasingly tied to digital assets.

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