The Australian Securities & Investments Commission has published its ASIC enforcement and regulatory update for July to December 2024, reporting that it has helped shut down more than 10,000 investment scam websites and online advertisements since establishing its takedown capability in July 2023, averaging about 130 scam websites removed per week. The update also points to a stronger anti-scam enforcement posture, including court action commenced against HSBC Australia in December alleging failures to adequately protect customers who were scammed out of millions of dollars. The report attributes 10,240 removals to common scam types, including 7,227 fake investment platform scams, 1,564 phishing scam hyperlinks and 1,257 cryptocurrency investment scams, and notes that ASIC reviews of the anti-scam practices of 15 banks outside the major four found significant room for improvement. Across broader enforcement activity in the last six months of 2024, ASIC increased new investigations by 31% to 109, commenced 15 new court actions and completed 376 surveillances, and reported outcomes including AUD 46.6 million in civil penalties and 13 criminal convictions. The update highlights actions against NAB (alleged failures affecting 345 hardship applicants), QBE Insurance (alleged misleading pricing discount representations), Cbus trustee United Super (alleged delays in death benefit and total and permanent disability insurance claims affecting more than 10,000 members and claimants), a review of high fees charged to low-income bank customers that led to planned refunds of over AUD 28 million, and proceedings against Regional Express Holdings Limited alleging misleading and deceptive conduct and breaches of continuous disclosure obligations. ASIC linked the uplift in activity to its organisational redesign and refreshed executive team, and said its 2025 enforcement priorities will continue to focus on preventing financial harm amid cost-of-living pressures, with banks, insurers and superannuation trustees singled out as areas of concern.
Australian Securities & Investments Commission 2025-02-28
Australian Securities & Investments Commission publishes enforcement update highlighting removal of over 10,000 investment scam sites and rising investigations and penalties
ASIC's update for July to December 2024 highlighted shutting down over 10,000 investment scam websites and ads since July 2023. Court action was initiated against HSBC Australia for alleged customer protection failures, with noted anti-scam practice improvements needed in 15 banks. Enforcement saw a 31% rise in investigations, 15 new court actions, and AUD 46.6 million in penalties. Key actions involved NAB, QBE Insurance, Cbus trustee United Super, and Regional Express Holdings. Increased activity was due to organisational redesign, with 2025 priorities on preventing financial harm, focusing on banks, insurers, and superannuation trustees.