March 2025 ASIC Alert: Shield Your Investments from Unlicensed Scams

In March 2025, ASIC newly released the Investor Alert List to remind investors to be wary of suspicious websites. The Australian Securities and Investments Commission (ASIC), established on July 1, 1998, is an independent government agency in Australia, which is responsible for regulating Australian companies.

The entity types of the companies, businesses and websites on this list are Imposter and Unlicensed. They lack the necessary current Australian Financial Services (AFS) licence. Without this licence, they are not authorized to legally conduct financial services. Similarly, they need an Australian Credit Licence to engage in credit-related activities, such as providing credit or acting as an intermediary in credit contracts. Since they do not have these licences issued by ASIC, they are strictly prohibited from offering investments in Australia.

When investors choose to engage in investment activities with unauthorized companies, they will face risks to the safety of their funds. These companies may transfer investors' funds to private accounts for personal extravagance or high-risk speculative activities. Once the investment fails or there are problems with the company's operations, it is almost impossible for investors to recover their principal. In addition, unauthorized companies are not bound by these rules and often use fraudulent means to induce investors. Moreover, unauthorized companies usually lack after-sales protection. When problems occur with the investment, they may simply disappear or shirk their responsibilities with various excuses.

To learn more about the previous warning lists, you can search for “ASIC issues warning to unregistered entities in Australia in January 2025” or “Stay Alert: Your Guide to ASICs Investor Warning List for February 2025” in the WikiFX Foreign Exchange Encyclopedia section.