The Australian Competition and Consumer Commission (ACCC) has warned that scammers are cloning legitimate news websites to promote fake investment opportunities on social media platforms. The fake sites, which mimic the look and feel of real news outlets, are being used to lend credibility to fraudulent investment schemes that promise high returns.
How the Scams Work
According to the ACCC's latest report on scam activity, fraudsters create exact replicas of well-known news websites, including their logos, layout, and article formatting. They then populate these clone sites with fabricated articles featuring fake endorsements from public figures and testimonials from supposed investors. The articles are promoted via paid advertisements on social media platforms such as Facebook and Instagram, targeting users interested in investing.
The ACCC reported that the number of reported investment scams rose by 20% in the past year, with losses totaling over $100 million. The commission noted that clone news sites are a growing tactic used to deceive victims.
Victims and Losses
Many victims are older Australians who are active on social media and looking for ways to grow their savings. One victim, a 65-year-old retiree from Sydney, lost $50,000 after clicking on a Facebook ad that led to a clone site of a major financial newspaper. The site featured a fabricated article quoting a well-known economist endorsing a cryptocurrency investment scheme.
"I thought I was reading a reputable source, so I trusted the information," the victim said. "It looked exactly like the real website."
ACCC Recommendations
The ACCC advises consumers to verify the authenticity of news websites by checking the URL carefully, looking for subtle differences such as misspelled domains or altered logos. The commission also recommends using official news apps rather than clicking on links from social media ads. Additionally, consumers should be wary of any investment opportunity that promises guaranteed high returns with little risk.
"If it sounds too good to be true, it probably is," said ACCC Deputy Chair Delia Rickard. "Scammers are becoming more sophisticated, but simple checks can help protect your finances."
Social Media Platforms' Response
Facebook and Instagram, owned by Meta, have stated that they are working to identify and remove scam ads. A Meta spokesperson said the company uses automated systems and human reviewers to detect fraudulent content. However, the ACCC has called for stronger measures, including mandatory verification of advertisers' identities before they can run financial ads.
The ACCC report also highlights the role of cryptocurrency in these scams, with many fake investment sites requiring payments in Bitcoin or other digital currencies, which are harder to trace.
What to Do If You've Been Scammed
If you suspect you have fallen victim to a scam, the ACCC advises contacting your bank immediately to stop any further payments and reporting the incident to the Australian Cyber Security Centre (ACSC) via its ReportCyber website. The ACCC also encourages victims to report scams to Scamwatch to help track trends and warn others.
