ACCC, ASIC 'fusion cell' to tackle investment scams

The newly established National Anti-Scam Centre has set up a taskforce - what it calls a 'fusion cell' - to target financial losses resulting from investment scams.

The centre officially launched this month to develop capability and data technology to report scams, share data and identify trends over the next three years. 

Its first short-term 'fusion cell' team will be led by the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC), and comprises officials from the banks, telecoms and digital platforms.

The 'fusion cell' is tasked will developing and finding methods for dismantling investment scams to reduce financial loss as damages reach $1 billion a year, according to the ACCC and ASIC. 

This is the first 'fusion cell' with the centre and will be given six months to come up with timely actions that can be taken to address specific problems.

Back in the May federal budget, an $86.5 million package to combat scams and online fraud was first laid out, which included $58 million to set up the National Anti-Scam Centre and to establish ‘fusion cells’ to target specific scams. 

ACCC deputy chair Catriona Lowe said in a statement that “the National Anti-Scam Centre is prioritising investment scam disruption as its first 'fusion cell' in an initiative that facilitates timely action by finance, telecommunications and digital platforms to stop scammers.”

“This additional level of coordination and focus across government and relevant industries will target investment scam activity more effectively and help prevent further losses to these scams,” Lowe said.

ASIC deputy chair Sarah Court said the two regulators “working together as part of the National Anti-Scam Centre's first 'fusion cell' is an important step towards protecting Australians from harmful investment scams.”

"A collaborative approach that sees regulators working with each other, as well as with the private sector, is crucial to addressing this challenge,” Court said.