The Australian Securities & Investments Commission (ASIC) has updated its guidance for Australian financial services (AFS) licensees on reducing the risk of share sale fraud, after a spike in reports of stolen shares linked to identity theft. The revised Information Sheet 237 Protecting against share sale fraud (INFO 237) sets out observed fraud methods and better practices for prevention and detection to help protect clients and intermediaries. The changes draw on findings from an ASIC-led industry review of AFS licensees’ client onboarding, verification and share sale fraud detection practices, and follow ASIC analysis showing a seven-fold increase in share sale fraud reports from market intermediaries over four years. Better practices highlighted include independently verifying the authenticity of onboarding materials where stock images, fakes or forgeries may be used, monitoring for unusual trading and large withdrawal activity particularly in newly opened accounts, and conducting additional due diligence when clients request changes to personal details such as addresses, emails and bank accounts including, where possible, checking bank accounts are held in the client’s name. ASIC also pointed licensees to its anti-scam reports for banks and noted the availability of Digital ID Act 2024-accredited digital identity services, while urging investors to monitor portfolios and strengthen account security such as using multi-factor authentication and passphrases.

Original source View in tracker