The Australian Competition and Consumer Commission (ACCC) has warned Australians against investing in “bitcoins” on fake trading websites. As part of an ongoing campaign by the US Federal Trade Commission (FTC), the agency issued a warning about fake trading websites. The Australian Securities and Investments Commission tightened its anti-fraud practices after a recent scare when fake trading websites managed to fool investors.
Fake trading websites could cheat Australians into investing money in their schemes by promising 500% or higher returns. These so-called investments would later appear to be paying out profits on Australian bank accounts, but they were actually fees these bogus trading websites charged.
Australians were told that these foreign websites were backed by international organisations that guaranteed such high percentage returns. Some bogus trading websites even included disclaimers stating that Australians could lose money in these investments.
A fake website hosted in the Australian city of Hobart was one example. This website was successful in duping Australians into believing they were investing in the digital currency of Australia. The website promoted the Australian dollar’s value against several other major currencies, including the British pound, Euro, Japanese yen, and Swiss franc. Even though the Australian government launched an investigation into this website and its operation very quickly, it is worth noting that no one was arrested as a result of this investigation.
Many fake trading websites promote fake money to obtain personal information from Australians. For example, bogus websites purport to allow Australian investors to invest in an “XYZ” because most XYZ is not based in Australia. It is unclear whether this can be done with Australian dollars. Some of these websites are known to mislead investors about the nature of these investments. The Australian Securities and Investments Commission, on the other hand, has stated that such scams will not be tolerated, especially since Australians may be investing in real estate.
However, it is important to remember that, while these websites are mostly discovered through news stories, Australians should also be on the lookout for suspicious sites. Website addresses that appear identical or very similar to legitimate investment or trading websites may be fraudulent. Such sites frequently masquerade as legitimate sites to entice and then defraud potential investors. It is advised that when visiting such a site, users do not provide any personal information or bank account information, as this information may be stolen. In the event of a scam, many victims of these bogus websites lose their Australian dollars and never see the promised profit.