The Australian Securities and Investments Commission (ASIC) is warning consumers about the misuse of the ASIC logo on social media to promote fake investment and stock trading lessons and cold calling and impersonations via Telegram.
ASIC has received a number of reports about advertisements for a ‘Main Share Trading Class’. The ads have been shown on social media platforms, display the ASIC logo and claim to be sponsored by ASIC.
When consumers click on the ad, they are taken to a private Whatsapp group called Lonton Wealth Management Center.
These social media ads mislead consumers by:
- Display the ASIC logo. ASIC is not associated with this provider.
- False claim that the master share trading class is sponsored/supported by ASIC. This is not real.
ASIC is also aware of repeated calls from people claiming to be from ASIC trying to work with consumers to get a refund on an investment. This is a concern as ASIC does not call consumers about investments or refunds on investments.
In addition, ASIC has also become aware of an impersonation account on Telegram, pretending to be an ASIC social media account. The operators of this account ask investors for money to release their investment funds located in Australia.
This is worrying because:
- ASIC does not maintain a Telegram account.
- ASIC will never ask for money as upfront taxes or payments to release investments held in Australia.
Entities that engage with consumers through private social media groups may attempt to conceal their true identity.
A social media advertisement is not relevant to ASIC if:
- uses the ASIC logo to promote investment or financial products and services; ASIC will never endorse a product or training program.
- claims to be affiliated with ASIC – they may say they are ‘supported’ or ‘sponsored’ by ASIC.
- claims to be from ASIC but refers to a third party.
- directed to a social media account with the ASIC logo, but the account was likely created recently as it has no post history and does not use ASIC’s social media handles.