Key points
- ASIC is seeing an increase in a suspected investment scam involving social media ads for investing opportunities and tips
- ASIC is warning consumers not to invest money via the ads which then add consumers to Whatsapp groups
- Two unlicensed promotors - Juhbz and Ptounx - often appear in the website URL
ASIC is warning consumers about a suspected investment scam involving social media ads for investing opportunities and tips, with consumers then added to WhatsApp groups.
ASIC has received reports from Australian consumers who have invested and paid fees into the suspected investment scam and are now unable to access their money.
ASIC is also aware of an overseas regulator who has issued a public warning about the activity.
The brands of these investing opportunities and associated websites frequently change, but ASIC is warning against two unlicensed promotors - Juhbz and Ptounx. Often these names are used in the website URL. These promotors do not hold an Australian financial services (AFS) licence.
ASIC is encouraging consumers to exercise caution when investing their money, and in particular not to click on investment ads on social platforms offering share trading tips or very high returns, and not to share personal information or identity documents. ASIC also encourages consumers to check they are dealing with businesses who hold an AFSL.
How it works
- The suspected scammer creates social media ads offering investment tips on share/stock trading for ASX-listed companies and futures contracts.
- When consumers click on the ad and register their interest, they are added to a WhatsApp group. They may also receive invitations to join more 'exclusive' WhatsApp investment groups.
- Through the messaging platform, the suspected scammers offer crypto-asset investment opportunities and promise very high returns. They encourage investors to subscribe to an initial coin offering (ICO) or an initial 'DEX' offering (IDO) and/or to start trading crypto-assets via a recommended investment platform website. ASIC is concerned that this is a simulated/scam platform.
- Although advertised as investment tips and stock trading for shares and futures, the suspected scammers only offer "trading" in crypto-assets.
- Once an investor has provided funds, the investments seemingly produce the publicised high returns. Alternatively, the investment may appear to go down in value so investors are encouraged to deposit additional funds on expectations that the value will recover.
- When investors try to withdraw their funds, they are instructed to pay fees or taxes before withdrawals can be processed.
- Even if the investor pays the fees, the funds are not paid out. In fact, this is another tactic to get further money from victims.
How the scam works - text version
- Suspected scammers create social media ads offering investing tips on share/stock trading for ASX listed companies and futures contracts
- Consumer clicks on the ad and registers interest
- Consumer is added to a Whatsapp investment group
- Suspected scammers offer crypto-asset investments with very high returns. They encourage consumers to sign up and invest through their trading platform
- Consumers sign up and invest through the fake trading platform. The value appears to increase.
- The consumer tries to withdraw their money. They are asked to pay withdrawal fees.
- Investor pays fees to withdraw funds. Suspected scammer cuts contact and does not return the money invested.
Warning: check your privacy settings
ASIC is also seeing a new trend of consumers being added to investment groups on messaging platforms, without any initial action to show interest. ASIC is urging consumers to check their privacy settings to ensure they can 'approve' who can add them to any chat groups.
Why ASIC is concerned
We understand from an international regulator that the operators of these websites and chat groups claim to help consumers invest in shares and crypto-assets to receive generous returns.
However, ASIC has received reports from Australian consumers who have invested and paid fees but are unable to access their money.
ASIC has listed the following entities on Moneysmart's Investor Alert list:
- JUHBZ (juhbz.com, juhbzq.com and more) - Identifies 10 websites and 1 Facebook profile;
- Juhbz (juhbzy.com, juhbzx.com, juhbzt.com and more) - Identifies 5 websites;
- Ptounx (ptounx.com, ptounxb.com and more) - Identifies 5 websites, 1 Facebook profile and 1 YouTube channel; and
- Ptounx (ptounxd.com, ptounxq.com, ptounxf.com and more) - Identifies 6 websites.
These entities are:
- Operating without an Australian financial services (AFS) licence
- Advertising very high investment returns of up to 100% per month
- Failing to return funds when requested
The unlicenced promotors have gone to great lengths to make their approach appear authentic, demonstrated by:
Creating credibility
- claiming to be licensed by overseas authorities by impersonating existing licensees on the register via partial matches, OR
- obtaining registration or licenses from overseas authorities and displaying these on their website,
- creating fake positive review news articles which have been written and distributed by the fake investment platform;
- enabling consumers to make several trades to encourage them to believe the platform to be authentic and invest more money;
- creating social media accounts, advertisements and websites that look convincing.
Appearing to offer incentives and guidance
- offering free education or tips on investment trading
- providing incentives such as gift cards and account credits
- having a key person touch point (a 'mentor', 'coach', 'professor' or 'assistant') who consumers can chat with on Whatsapp
Background
Be alert to investment scams
When it comes to investment scams, remember these three things:
STOP - Don't give personal information or act on investment advice you have come across on social media. Don't feel pressured to invest. If you have any doubts, stop communicating with them.
CHECK - Ask yourself if you really know what you are investing in. Scammers can create fake digital ads, websites, news and reviews to make an investment seem legitimate. Do an internet search to see if there are warnings about this investment scam, including if a well-known public figure has warned about being impersonated. And check ASIC's website to confirm if the person or entity offering the investment is licenced or authorised to do so.
PROTECT - Act quickly if something feels wrong. If you have shared financial information or transferred money, contact your bank immediately. Help others by reporting scams to Scamwatch.
Find out more about how to spot an investment scam.
Think you have been scammed?
If you think you've been scammed, take these steps fast:
- Do not send any more money. Block all contact from the scammer.
- Report it to your bank or financial institution. Contact your bank or financial institution and ask them to stop any transactions. If you are not happy with your financial institution's response, you can make a complaint to the Australian Financial Complaints Authority.
- Contact IDCARE, a free government-funded service, which can help to develop a specific response plan if your identity has been compromised. IDCARE will never contact you out of the blue.
- Be wary of follow-up scams promising to help get your money back.
- Report it to Scamwatch to help stop the scammer.
- Warn your family and friends about the scam.
Go to what to do if you've been scammed for more detailed steps.
