Australia’s top financial regulator has issued a warning to consumers about potential investment-related scams involving social media ads.
The Australian Securities and Investments Commission (ASIC) has warned consumers about suspected investment scams linked to social media ads where victims are added to WhatsApp groups and offered investing opportunities and tips.
After receiving reports about Australian consumers having invested and paid fees into the suspected investment scam before losing access to their money, the country’s leading regulator felt compelled to issue advice to investors.
In an official press release, ASIC warned against two unlicensed promoters, Juhbz and Ptounx. Although the names and websites of these investment opportunities frequently change, neither Juhbz nor Ptounx currently holds an Australian Financial Services Licence (AFSL).
ASIC added that it is also aware of an overseas regulator who has issued a public warning about the activity, and is encouraging consumers to exercise caution when investing their money.
Individuals are advised 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. The authority is also asking consumers to check they are dealing with businesses who hold an AFSL.
Alongside the advice offered above, 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
- Ptounx (ptounxd.com, ptounxq.com, ptounxf.com and more) – Identifies 6 websites
Each of 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
Traders and investors should always be vigilant online, especially when using the various popular social media platforms which scammers use to target their victims.
It’s so important to trade safety online, which is why FX Trust Score has put together a guide to the Best ASIC Forex Brokers in 2024, featuring our list of the top brokerages operating under the ASIC licence right now – to help traders can make a better informed choices.
Alternatively, to keep track of the latest news and insights from across the financial world, head over to our industry news section.
