Australia Launches Fusion Cell to Tackle $1b Investment Scams

<p>The
escalating problem of investment scams in Australia, which is costing citizens more than
$1 billion a year, has catalyzed the creation of the National Anti-Scam
Centre's first fusion cell. The Australian Competition and Consumer Commission
(ACCC) and the Australian Securities and Investments Commission (<a href="https://www.financemagnates.com/terms/a/asic/">ASIC</a>) will be
at the helm of the new initiative. </p><p>The fusion
cell will bring representatives from banks, digital platforms and the telecommunication
industry together to formulate strategies to disrupt investment scams and lessen
financial losses.</p><p>ASIC and ACCC Collaborate
to Combat Investment Scams</p><p>The fusion
cell is a time-limited task force conceived to connect expertise from both the public and private sector. This is aimed at swiftly addressing specific
pressing issues. A variety of fusion cells will be organized by the National
Anti-Scam Centre, each with different participants, to focus on distinct types
of scams.</p><p>"Investment
scams lead to the highest level of reported individual losses and cause
emotional devastation for victims," Catriona Lowe, the Deputy Chairwoman
of ACCC, highlighted. She explained that the decision is to prioritize investment scam
disruption since the focus of the first fusion cell is to facilitate swift action
from finance, telecommunications, and digital platforms and halt these scams.</p><p>Welcoming
the initiative, Sarah Court, the Deputy Chairwoman of <a href="https://www.financemagnates.com/tag/asic/" target="_blank" rel="follow">ASIC</a>, emphasized the
importance of a cooperative approach between regulators and the private sector
in tackling this issue.</p><p>“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,” Court added.</p><p>The new
project came into effect a few months after Australians <a href="https://www.financemagnates.com/forex/aussies-report-a-record-au15b-investment-scam-losses-in-2022/" target="_blank" rel="follow">reported a record amount of AUD
1.5 billion in investment scam losses in 2022</a>. The losses <a href="https://www.financemagnates.com/forex/australians-lost-over-au2-billion-to-scams-in-2021/" target="_blank" rel="follow">jumped 80%</a> compared to the numbers reported in the previous year. The ACCC further acknowledges that the actual figures may be significantly higher than the
official figures.</p><p>Goals of the Investment
Scam Fusion Cell</p><p>The fusion
cell will be operational for six months, with the National
Anti-Scam Centre disclosing outcomes publicly. The cell's objectives include early
intervention to prevent scammers from reaching potential victims and removing
scam-related websites from the internet.</p><p>In addition,
the new initiative will share information about scam activities to enable
the private sector to disrupt scams and build public awareness campaigns to
help people avoid these classifications of fraud.</p><p>Consumers
are advised to be wary of seemingly lucrative investment opportunities with
little or no risk. Australians can lessen their risk of falling prey to
<a href="https://www.financemagnates.com/tag/investment-scam/" target="_blank" rel="follow">investment scams</a> by conducting basic checks, such as ensuring that any party
promoting financial products is licensed.</p><p>The
National Anti-Scam Centre, which was launched this month, plans to develop its
capability and data-sharing technology over the next three years. This
development will allow the center to receive scam reports from any institution,
analyze trends in depth to disrupt scams and educate Australians.</p>

This article was written by Damian Chmiel at www.financemagnates.com.