The Federal Court granted ASIC's application on just and equitable grounds
The Australian Securities and Investments Commission (ASIC) has successfully applied to shut down nearly 100 companies, many of which were attempting to appear credible and offer genuine services, according to Sarah Court, ASIC’s deputy chairperson.
Justice Angus Stewart of the Federal Court granted ASIC’s application to wind up the 95 companies on just and equitable grounds upon finding a justifiable lack of confidence in the companies’ conduct and management, ASIC’s media release said.
“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,” Court said.
ASIC suspects that many of the 95 companies to be wound up by court order may be associated with online investment and romance baiting scams, the media release said. ASIC explained that a romance bait scam, also known as a “pig butchering” scam, often involves an offender who:
According to the media release, ASIC believes many of these companies may be associated with platforms that deceive consumers into investing in false foreign exchange, digital assets, or commodities trading. ASIC added that it has been working to take down these websites and apps.
In its media release, ASIC said it discovered that false information enabled most of these companies to incorporate. Court shared ASIC’s suspicions that the incorporation of some of these companies also involved stolen identities.
In its media release, ASIC warned consumers to keep being vigilant when dealing with online investment websites and apps. Court emphasised there is still a high risk of falling victim to scams and identity fraud.
“Scammers will use every tool they can think of to steal people’s money and personal information,” Court said.
In the media release, Court noted that scammers have started targeting victims and gaining their trust using more complex techniques, such as setting up false companies and creating websites and apps that look legitimate.
Court said that ASIC has been working to combat these scammers through the prosecution of those responsible or the closure of scam websites, among other ways. In the media release, Court likened these types of scams to a hydra – upon shutting one down, “one and two more take its place.”
Court added that ASIC has been working to upgrade its registry system to thwart these scams and prevent the future theft of money and personal information.
