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Australian Financial Regulator Warns Public to Beware of Recovery Scams

Mar 19, 2025 BrokersView

Australian Financial Regulator Warns Public to Beware of Recovery Scams

The Australian Securities and Investments Commission (ASIC) has become aware of consumers receiving calls or emails from ASIC impersonators asking them to pay for the release of funds or assets. The regulator is reminding financial consumers to be on the lookout for scammers posing as ASIC and recovery scams.

 

The Commission clarified that ASIC never asks consumers to pay for any currency on the basis of releasing funds and assets, nor does it ask for or accept digital payments or crypto asset payments. As the local financial regulator, ASIC does not allow third-party entities to copy or use its logo, nor does it guarantee its services.

 

ASIC advised people to hang up when they receive calls from someone claiming to be from the Commission, and call back to the number listed on ASIC's official website.

 

About recovery scams

Recovery scams that pop up on social media and financial forums are trying to make investment scam victims victimized again.

 

Scammers often pose as victims of financial scams and send posts or comments on social media platforms and forums claiming to have met a “savior” and have successfully recovered the funds that criminals stole. They seem to be kindly leaving the contact information of the “savior” for helping other victims, but in fact, scammers are waiting for desperate victims to take the bait.

 

These scams often pretend to offer money recovery service and require the victim to pay a fee. However, the entities do not have the ability to trace the defrauded funds, nor do they intend to do so. They are simply taking advantage of the victim's eagerness to recoup their losses to enrich themselves.

 

Tracing scammed funds is not an easy job for even law enforcement agencies, especially those scams involving cryptocurrency. The funds recovered by authorities are much less than that victims lost to investment scams. In most cases, unless law enforcement agencies and payment institutions such as banks intervene and stop the victim before the transfer is made (e.g., the Singapore police have the power to freeze fraudulent transactions under certain circumstances), most victims of financial scams can hardly recover their loss to financial scams.

 

Investors are advised to be cautious in making investment decisions. Investigate whether the relevant trading platforms and financial firms have licenses before making a deposit, and ensure your capitals are protected by the local financial regulator.

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