ASIC Warns of Escalating Share Sale Scams Amid $119M Scam Losses

Australia‘s financial regulator, the Australian Securities and Investments Commission (ASIC), has raised the alarm over a dramatic rise in share sale fraud—an increasingly sophisticated scam that has grown sevenfold in the past four years. Fraudsters are reportedly hijacking brokerage accounts and illegally selling or transferring shares to cash in on unsuspecting investors’ assets.

ASIC Commissioner Simone Constant described the impact as both “emotional and financial,” noting that some victims have lost entire investment portfolios worth millions of dollars. “Were calling on market intermediaries to step up and protect their customers by strengthening their share sale fraud prevention, detection and response practices,” she said.

In response, ASIC has issued fresh guidance to all regulated brokers and trading platforms. Firms are urged to independently verify client identities, scrutinize forgeries and fake documents during onboarding, and monitor for suspicious trading behavior. This includes sudden large withdrawals or unexpected changes to account details such as contact information and bank accounts.

For investors, ASIC recommends routine checks of portfolios and account activities to detect any unauthorized actions early. The regulator emphasizes that vigilance is essential, as share sale fraud often goes unnoticed until the damage is done.

This warning follows broader concerns around financial crime in Australia. Losses to scams in early 2025 have already approached AU$119 million. In parallel, ASIC has taken action against social media “finfluencers” who promoted high-risk financial products like CFDs without the required advisory licenses.