ASIC Warns of "Hydra-like" Scammers: Persistent Online Investment Websites and Apps Despite Shutdowns

The Australian Securities and Investments Commission (ASIC) has issued a consumer warning about the growing threat of “hydra-like” scams. ASIC Deputy Chair Sarah Court likened these scams to hydras: “you shut down one and two more take its place”. ASIC warns consumers to remain vigilant when engaging with online investment websites and mobile applications.

ASIC secured court orders to shut down 95 companies, many of which are suspected to be connected to online investment and romance baiting scams, commonly referred to as “pig butchering” scams. Among the closed entities are 19 Securities Pty Limited, 24-U Pty Ltd, 90Rich Markets Pty Ltd, Aximtrade Pty Ltd, and others. (We just list a few here)

Many of the companies that operated alongside websites and apps were believed to have been involved in facilitating suspected scam activities that duped victims into investing in fake foreign exchange, digital assets, and commodities trading. ASIC has acted to have numerous related websites and apps taken down.

Sarah Court said, “ASIC believes many of these companies were set up with the aim of providing a veneer of credibility by purporting to provide genuine services. This action has shut these companies down and protects consumers from entities with no proper management or control, including some that were associated with potentially fraudulent activity.”

Ms Court further highlighted the sophisticated techniques employed by scammers, including creating sham companies and professional-looking websites and apps to create a false sense of security. In some cases, ASIC suspects that stolen identities were used to establish the fraudulent companies. “Scammers will use every tool they can think of to steal people’s money and personal information,” Court warned.