The first fusion cell of the National Anti-Scam Centre to combat investment fraud.
The first fusion cell of the National Anti-Scam Centre to combat investment fraud.
In order to combat the growing issue of investment scams, which cost Australians more than $1 billion annually, the National Anti-Scam Centre will coordinate an investment scam fusion cell.
The ACCC and ASIC will be in charge of the fusion cell, which will have representation from banks, the telecommunications industry, and digital platforms. The new National Anti-Scam Centre's first fusion cell will identify strategies for thwarting investment scams in order to reduce scam losses.
Fusion cells are time-limited task forces created to pool knowledge from the public and private sectors in order to act quickly to solve particular, urgent issues. To focus on specific scam types, the National Anti-Scam Centre will organise a number of fusion cells with various participants.
"Investment scams lead to the highest level of reported individual losses and cause emotional devastation for victims," says Catriona Lowe, deputy chair of the ACCC.
To facilitate prompt action by the financial, telecommunications, and digital platforms to stop scammers, the National Anti-Scam Centre has prioritised investment scam disruption as its first fusion cell.
The government and relevant industries will target investment scam activity more effectively and help stop further losses due to these scams with this increased level of coordination and focus, Ms. Lowe continued.
The National Anti-Scam Centre will benefit from ASIC's expertise in investment scams, according to ASIC Deputy Chair Sarah Court, who expressed her appreciation for the fusion cell's announcement.
"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," said Ms. Court.
To address this issue, she said, "a collaborative approach that sees regulators working with each other, as well as with the private sector, is crucial."
The investment scam fusion cell will be set up initially for 6 months, with the National Anti-Scam Centre publicly reporting outcomes. The fusion cell will aim for:
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 to take disruption action
Providing information to the public so they can avoid investment scams
Identifying intelligence to refer to law enforcement in Australia and overseas
The National Anti-Scam Centre launched on 1 July 2023. The centre will build capability and data sharing technology over the next three years.
To recall, Proofpoint found that 67% of ASX 200 listed companies have not implemented the recommended and strictest level of Domain-based Message Authentication, Reporting, and Conformance (DMARC) protection, which prevents cybercriminals from spoofing organisations' identities and reducing email fraud.
Only 33% of ASX 200 companies are blocking suspicious emails, despite 81% adopting the email authentication protocol. 19% of the ASX 200 lack DMARC records, leaving them vulnerable to email fraud and domain spoofing.
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