Consumers are being hit with an “exponential increase” in scams, according to ASIC chair Joe Longo.
In an address to the AICD Governance Summit on Thursday, 3 May, Mr Longo revealed that there has been a concerning increase in scams in recent years, including those that relate to crypto-assets.
“Over the past three years, scams have risen from 15 per cent to 35 per cent of all reports of misconduct made to ASIC, indicating that this is an increasingly significant issue for consumers,” Mr Longo said.
“With hundreds of millions lost per year to scams, government agencies have observed a rise in investment and other scams during the pandemic, while largely unregulated crypto-assets are used increasingly to funnel money to scammers overseas.”
Mr Longo said ASIC is committed to tackling the issue in 2022 through working with other regulators, industry and social media platforms to disrupt scams and addressing the “deceptive” promotion of riskier asset classes, such as crypto.
In ASIC’s quarterly update last month, Mr Longo said the regulator is committed to raising awareness on new and continuing regulatory obligations, including the growth of crypto-asset adoption.
“The adoption of crypto-assets by Australians seeking better investment yields continued to grow during the quarter,” Mr Longo said.
“Investor protection lay at the core of our actions and advice in this space."
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