26 September 2023

ASIC shares warning about shares scam

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The Australian Securities and Investment Commission (ASIC) has issued an alert to the community to be aware of a scam in which fake endorsements are being made to, and misleading, investors.

The Commission said it was aware of a fake website and social media page called Market Makers Insider/MMI Forex that was misleading and scamming investors.

ASIC said the pages displayed ASIC Chair James Shipton’s name and photo to give the impression that he was the Chief Executive of the fake entity.

It said the scammers also falsely claimed it had bought “ASIC Insurance” on a weekly basis and falsely claimed traders would see high returns of 70 per cent from the scheme.

“Scammers use sophisticated websites and issue fake online press releases that make false claims of outstanding performance,” the Commission said.

“ASIC never gives permission to use its logo or the names of its staff and leaders to promote financial products or services,” it said.

The Commission also issued advice on what people should consider before investing via a website.

“Make sure that the entity operating the website is who they are claiming to be,” it said.

“Search ASIC’s registers and compare a company’s registered office address to the address displayed on the website.”

It said people should also check whether the company was incorporated recently.

“If the site claims the company has 20 years of successful investment and 10,000 clients, but was registered 2 years ago, you know it’s a scam,” it said.

Further information and tips on how to spot an investment scam can be accessed on ASIC’s MoneySmart website at this PS News link.

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