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ASIC Shuts Down 95 Scam Companies Related to Pig Butchering and Romance Scams

asic pig butchering romance scams australia

The Australian Securities and Investments Commission (ASIC) has successfully obtained court orders to wind up 95 companies suspected of being involved in online investment scams. This action marks a significant development in ASIC’s ongoing efforts to protect consumers from fraudulent schemes, particularly those related to “pig butchering” scams. These scams, which are often disguised as legitimate investment opportunities, have been proliferating through professional-looking websites and mobile applications. ASIC’s warning about the persistence and complexity of such scams highlights the need for continued vigilance, as these fraudulent operations are often difficult to shut down entirely due to their “hydra-like” nature. This article dives deep into ASIC’s successful action, the techniques used by scammers, and what consumers should know to protect themselves.

ASIC’s recent action to shut down 95 companies came after the Federal Court agreed that these entities had been incorporated with false information. The companies in question were suspected of being involved in online investment scams, including romance baiting, or “pig butchering” scams, which often trick victims into investing in fake foreign exchange (FX), digital assets, or commodities trading platforms. The Court found overwhelming evidence that these companies had been set up without proper management and control, leading to the conclusion that they should be wound up to protect consumers.

The court also accepted that these companies were likely associated with fraudulent activities, which led to their closure. Many of these entities had websites and apps designed to deceive consumers, providing a false sense of security. ASIC’s Deputy Chair, Sarah Court, explained that the companies were created with the intent of appearing legitimate, which made it easier for scammers to exploit unsuspecting individuals. These scams often start with the creation of a fake company, followed by the launch of well-crafted websites and mobile applications that appear authentic, making it difficult for potential victims to detect fraudulent intent.

“Many of these companies were set up with the aim of providing a veneer of credibility by purporting to provide genuine services. This action has shut these companies down and protects consumers from entities with no proper management or control, including some that were associated with potentially fraudulent activity,” said Sarah Court, emphasizing the need to dismantle these entities as quickly as possible.

The “Hydra-Like” Nature of Investment Scams

One of the most alarming aspects of these scams, according to ASIC, is their “hydra-like” nature. This means that for every scam website or company taken down, more tend to emerge in their place. ASIC’s efforts to remove fraudulent websites and apps are ongoing, with the Commission taking down more than 130 scam websites each week. Despite these efforts, the sheer volume and adaptability of the scams make it difficult to entirely eradicate them.

“Scammers will use every tool they can think of to steal people’s money and personal information,” said Sarah Court. The tools used by scammers have become increasingly sophisticated, including the use of stolen identities to incorporate companies that appear to be legitimate. These scams often involve victims being drawn into trusting fake investment platforms, which look professional and mimic well-known websites. Once the victim deposits money, it is typically transferred to the scammer’s accounts, with little hope of recovery.

The complexity of these frauds is growing. Scammers no longer rely on simple tactics but use highly organized methods to create and maintain fake companies that are almost indistinguishable from legitimate ones. These scams are also incredibly adaptable, which is why they are so difficult to tackle. With each scam website that is taken down, new ones quickly pop up, often under different names, with fresh websites and apps that look just as legitimate as the last.

ASIC’s experience with shutting down scams has shown that these fraudsters will persist as long as they are able to exploit vulnerable individuals. This has led ASIC to adopt a more proactive approach, with an emphasis on taking down scam websites quickly and efficiently. However, despite these efforts, the task remains daunting. The constant emergence of new scams has made it clear that these criminals are determined and willing to go to great lengths to steal money from unsuspecting victims.

The Role of Romance Baiting in Investment Scams

Romance baiting, a specific type of scam closely associated with online investment fraud, plays a significant role in the broader “pig butchering” scheme. Scammers typically target victims through social media platforms, building relationships over time to gain their trust. Once a rapport is established, the scammer encourages the victim to invest in a fake platform, often for digital assets or foreign exchange trading. These platforms are designed to look like legitimate investment websites, but they are merely vehicles for fraud.

Romance baiting scams are particularly effective because they exploit emotional connections. Scammers take their time to build trust with the victim, often over weeks or even months, before convincing them to make an investment. The victim is led to believe they are trading on a legitimate platform, but in reality, the website or app is controlled by the scammer. This deceptive approach is what makes romance baiting so dangerous and successful.

Victims are led to believe that they are making smart financial decisions, and the scammers often go to great lengths to create an illusion of legitimacy. They may even provide fake testimonials or create fake news stories to add an extra layer of credibility. The platforms used in these scams often look identical to well-known and trusted trading websites, making it extremely difficult for the victim to differentiate between what is real and what is fake. Once the victim deposits money into these fraudulent platforms, it is typically transferred to the scammer’s accounts, and the victim loses all access to their funds.

Victims are then often encouraged to deposit more money in order to “recover” their losses, further compounding their financial harm. This cycle of investment and loss can continue for some time before the victim realizes that they have been scammed. Once the scam is discovered, it is often too late to recover the funds.

What is Pig Butchering?

Pig butchering scams are a form of investment fraud that is gaining traction globally. The term “pig butchering” refers to a slow process in which scammers fatten their victims, much like farmers would fatten a pig before slaughter. Scammers spend weeks or even months grooming victims, building trust through emotional manipulation, and convincing them that they are making wise financial decisions. This type of fraud is often associated with fake investment platforms for foreign exchange, digital currencies, and commodities trading.

The scam typically begins with the scammer targeting an individual through social media, dating apps, or even unsolicited messages. Once contact is established, the scammer starts a slow, emotionally manipulative relationship, pretending to care about the victim’s personal life. Through this manipulation, the scammer gains the victim’s trust and creates a foundation for the financial part of the scam.

As the victim becomes more emotionally attached, the scammer introduces them to an investment opportunity. The victim is persuaded to invest a small amount of money at first. At first, it seems as though the investment is yielding returns, and the victim may even be shown fake trading accounts to prove their profits. Over time, the victim is encouraged to increase their investment, often to the point where significant sums of money are involved.

At this stage, the victim may start to believe that the scammer truly cares about them and that the investment is legitimate. The victim may also be told that more money is needed in order to secure even larger returns. However, once the victim deposits a large sum of money, the scammer disappears, taking all the funds with them.

One of the most insidious aspects of pig butchering scams is that they exploit the victim’s emotions, creating a false sense of trust and security. The scammer is often highly skilled at manipulating the victim’s emotions, making it difficult for the victim to recognize that they are being scammed. Even when signs of fraud begin to appear, the emotional bond between the scammer and the victim can make it hard to break free.

These scams can cause severe financial losses, as well as emotional damage. Victims often feel humiliated and betrayed after realizing that they have been scammed, especially when they’ve invested large sums of money. The psychological toll of falling for a pig butchering scam can be significant, and many victims never fully recover.

ASIC’s Ongoing Efforts to Combat Fraud

ASIC’s role in tackling investment fraud extends beyond simply shutting down fraudulent companies. The Commission has been working to remove scam websites and apps at an unprecedented pace, with over 10,000 sites taken down to date. This includes a significant number of fake investment platforms, phishing scam links, and cryptocurrency fraud sites. ASIC’s enforcement and regulatory updates have shown that these scams are an ongoing threat, and the organization is committed to continuing its efforts to protect consumers.

In addition to shutting down fraudulent platforms, ASIC has taken legal action against financial institutions that have failed to protect their customers from scams. For instance, in December 2024, ASIC sued HSBC Australia for allegedly failing to safeguard its customers against a scam that resulted in millions of dollars in losses. In March 2025, ASIC charged Brendan Gunn for his role in an international scam ring, further demonstrating the Commission’s commitment to cracking down on fraudulent activities.

ASIC’s work also extends to improving the security and reliability of its own registry system. The agency is working to enhance its capabilities to better prevent fraudsters from using stolen identities and fake information to incorporate companies. These efforts are part of ASIC’s long-term strategy to create a more secure and trustworthy environment for consumers and investors.

Despite these efforts, the nature of investment fraud continues to evolve. Scammers constantly change their methods, often adopting new technologies and strategies to bypass regulatory measures. To stay ahead of these criminals, ASIC must continue to innovate and adapt. This requires not only the use of sophisticated technology but also a commitment to education and consumer awareness. By informing the public about the risks of online investment scams, ASIC aims to reduce the number of individuals who fall victim to these schemes.

The Future of Scam Prevention

While ASIC’s work in dismantling scam networks is crucial, it is clear that these fraudsters will continue to evolve and adapt. As technology advances, so do the tactics employed by scammers. The digital landscape presents new challenges, as scammers take advantage of emerging platforms to reach their victims. ASIC’s efforts to improve its registry system and enforce stricter regulations will be essential in preventing these scams from flourishing in the future.

Consumers must also remain vigilant and take proactive steps to protect themselves. This includes verifying the legitimacy of investment platforms, avoiding investments in unregulated assets, and being cautious when engaging with individuals or organizations online. Scammers will continue to use every tool at their disposal to exploit unsuspecting victims, but with increased awareness and vigilance, consumers can better safeguard themselves against these threats.

The involvement of social media platforms in romance baiting scams only highlights the growing sophistication of online fraud. As consumers increasingly rely on digital platforms to make investment decisions, scammers are quick to exploit these channels. This highlights the need for more robust consumer education and greater scrutiny of the platforms where investments are being made. Financial institutions, regulators, and consumers must work together to create an environment that is hostile to online fraud and scam activities.

Conclusion: Protecting Consumers in an Era of Complex Scams

ASIC’s recent legal victory in winding up 95 companies highlights the growing threat of online investment scams and the Commission’s dedication to protecting consumers. However, as Sarah Court aptly noted, these scams are “like hydras,” with new scams emerging as quickly as they are shut down. While ASIC’s efforts to dismantle fraudulent platforms and hold scammers accountable are crucial, consumers must also play an active role in safeguarding their financial well-being. By staying informed, vigilant, and cautious, individuals can reduce their risk of falling victim to these sophisticated and deceptive scams.

The “hydra-like” nature of these frauds means that consumers must remain proactive and alert to the potential threats. With scammers using increasingly sophisticated tactics, it’s important for both individuals and organizations to invest in their own education and awareness about the risks associated with online investments. Only through a combined effort can we hope to minimize the impact of these scams and protect consumers from falling victim to fraud.

Source: ASIC

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ASIC Shuts Down 95 Scam Companies Related to Pig Butchering and Romance Scams

Table of Contents

ASIC’s Legal Action Against Fraudulent Companies

The “Hydra-Like” Nature of Investment Scams