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Australians will be granted extra protections against investment scams, with the government establishing a new anti-scam cell.
The National Anti-Scam Centre has announced its first fusion cell, which aims to reduce the number of investment scam incidents across the country.
According to CommBank: “An investment scam is when someone contacts you out of nowhere, either via phone or email, offering the chance to invest in a ‘once-in-a-lifetime opportunity’.”
The Australian Competition and Consumers Commission (ACCC) highlighted that investment scams cost Aussies $1 billion per year.
“Investment scams lead to the highest level of reported individual losses and cause emotional devastation for victims,” ACCC deputy chair Catriona Lowe said.
The fusion cell will be spearheaded by the ACCC and the Australian Securities and Investments Commission (ASIC) and will include representatives from various professions, such as banks, telecommunications, and digital workers.
“That is why the National Anti-Scam Centre is prioritising investment scam disruption as its first fusion cell in an initiative that facilitates timely action by finance, telecommunications and digital platforms to stop scammers,” Ms Lowe said.
“This additional level of co-ordination and focus across government and relevant industries will target investment scam activity more effectively and help prevent further losses to these scams.”
The fusion cell will have an initial period of six months, in which outcomes will be publicly reported. The aims of the cell, as listed by the ACCC, are:
- Early intervention to disrupt investment scams, including stopping scammers from reaching potential victims
- Removing investment scam websites from the internet
- Sharing information about investment scam activity to assist the private sector in taking disruption action
- Providing information to the public so they can avoid investment scams
- Identifying intelligence to refer to law enforcement in Australia and overseas
ASIC deputy chair Sarah Court commented on the new partnership: “ASIC and the ACCC working together as part of the National Anti-Scam Centre’s first fusion cell is an important step towards protecting Australians from harmful investment scams.”
“A collaborative approach that sees regulators working with each other, as well as with the private sector, is crucial to addressing this challenge.”
To help protect individuals and businesses from these scams, the ACCC said: “Be suspicious of anyone offering you easy money. Investment scams often involve promises of big payouts for little or no risk, quick money, or guaranteed returns. But there’s always a catch.”
The National Anti-Scam Centre launched on 1 July, with the ACCC receiving a $58 million budget to establish the centre.
“We’ll be using this funding to build the technology needed to support high-frequency data sharing with a range of agencies, law enforcement and the private sector, with the mission to make Australia a harder target for scammers,” said Ms Lowe.
Jack Campbell
Jack is the editor at HR Leader.
