ASIC has issued a scam alert warning consumers that there has been an increase in the use of ASIC’s logo on social media to promote fake investments and stock market trading courses, cold calling by persons claiming to be from ASIC, and in an account impersonating ASIC on Telegram.

Scammers are adept at using convincing marketing (including the logos of government organisations like ASIC) and new technology to convince consumers to act on money-making opportunities that are just too good to be true. Social media is a clear target for scammers, with the National Anti-Scam Centre report on scams activity for 2023 showing reports to Scamwatch regarding social media increased by 30.6% during the year, with $93.5 million in losses.

ASIC’s warning to consumers covers three main areas of concern.

Advertisements on social media platforms: ASIC has received reports of ads on social media platforms displaying the ASIC logo and claiming ASIC sponsorship for a “Stock Trading Master Class”. The ads link to a private WhatsApp group called “Lonton Wealth Management Center” – an entity listed by ASIC on the Investor Alert List in May 2024. These ads are misleading, as ASIC is not associated with the entity, and ASIC does not sponsor the class.

Cold calling: Repeated cold calls from someone purporting to be from ASIC have been reported by consumers. The caller tries to engage with consumers about obtaining a refund on an investment. ASIC does not cold call consumers about investments.

Fake Telegram account: An account on Telegram is impersonating an ASIC social media account, with the operators asking investors for money to release their investment funds held in Australia. ASIC does not have a Telegram account as part of its social media presence and will never ask consumers for upfront payments or taxes to release Australian-held investments.

The regulator has provided a quick checklist to confirm that these types of social media ads are not associated with ASIC:

• ads using the ASIC logo to promote investing or financial products and services – ASIC will never endorse products or training courses;
• ads claiming the organisation or product is “supported” or “sponsored” by ASIC;
• ads that claim to be from ASIC but then refer instead to another party;
• ads that send consumers to a recently created social media account that uses the ASIC logo but has no post history or isn’t using one of ASIC’s recognised social media handles. ASIC currently has official social media accounts on Facebook (MoneysmartAU), X/Twitter (@MoneySmartTeam, @asic_connect, @asicmedia), Instagram (MoneysmartAU) and LinkedIn (ASIC).

e.ASIC is working with the National Anti-Scam Centre and social media platforms to remove the fake content. If consumers encounter the fake social media ads, ASIC says they should employ the STOP, THINK and PROTECT approach. That is: do not click through on the ads; check that the social media handles are ASIC’s official accounts and check for any scam warnings on ASIC’s official accounts; and, if possible, report the ads to the relevant social media platform and follow up by reporting the ad to Scamwatch. If a consumer thinks that they have been scammed, ASIC, Moneysmart, Scamwatch and IDCARE all offer information on what to do and the next steps to take.