ASIC is warning consumers to remain vigilant when engaging with online investment websites and mobile applications after successfully applying to wind-up 95 companies, many of which ASIC believes may be associated with online investment and romance baiting scams, also known as ‘pig butchering’ scams.
The Federal Court granted ASIC’s application to wind-up the 95 companies on just and equitable grounds after ASIC found most of the companies had been incorporated with false information.
The Court agreed with ASIC in finding that there was a justifiable lack of confidence in the conduct and management of each of the 95 companies, with Justice Stewart calling the case for winding up each company “overwhelming”.
Many of the companies were also associated with websites and apps, which ASIC believes may have been involved in facilitating suspected scam activity by tricking consumers into making investments in phoney foreign exchange, digital assets or commodities trading. ASIC has taken steps to have numerous related websites and apps taken down.
ASIC Deputy Chair 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 said that scammers were using increasingly complex techniques to target their victims, including setting up sham companies and professional looking websites and apps, to lull victims into a false sense of security. ASIC also suspects that, in some cases, the companies were incorporated using stolen identities.
“Scammers will use every tool they can think of to steal people’s money and personal information. ASIC takes action to frustrate their efforts, including by prosecuting those that help facilitate their conduct and taking down over 130 scam websites each week. Our ongoing work to uplift and improve our registry system will also help to prevent conduct such as this from occurring in the future.”
“However, these scams are like hydras: you shut down one and two more take its place. That's why we're warning consumers that the threat of scams and identity fraud remains high. We remind consumers to be vigilant,” said Ms Court.
Catherine Conneely and Thomas Birch of Cor Cordis have been appointed by the Court as joint liquidators of the 95 companies.
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Background
Romance baiting is a type of scam in which offenders often devote long periods of time, usually on social media, to gain the trust of victims before encouraging them to make investments, such as in digital assets and/or contracts for difference such as margin FX, often via professional looking websites or apps. Victims think they are trading on legitimate platforms, but they are actually fake platforms, created by the offenders, that are often designed to look identical to well-known sites. Victims’ money is deposited into accounts controlled by the offenders and never seen again.
The winding up action is the latest in ASIC's ongoing efforts to combat investment scams.
ASIC is removing around 130 scam websites a week, with the latest Enforcement and Regulatory Update indicating that more than 10,000 sites have been taken down, including 7,227 fake investment platform scams, 1,564 phishing scam hyperlinks and 1,257 cryptocurrency investment scams.
In December 2024, ASIC sued HSBC Australia for allegedly failing to adequately protect customers scammed out of millions of dollars (24-280MR).
In March 2025, Brendan Gunn was charged for allegedly dealing in the proceeds of crime connected to an international scam ring following an ASIC investigation (25-030MR).