ASIC warns against crypto scam Alliance Limited
The Australian Securities and Investments Commission (ASIC) today issued a warning regarding a suspicious website called Alliance Limited (alliancelimited.org) that is misleading cryptocurrency investors.
The page wrongly displays ASIC’s logo to give the impression that ASIC endorses the investment. An entity named ‘Alliance Limited’ claims to offer a high yield cryptocurrency investment management service at 2% daily profits and promotes itself as ‘completely risk free’. The entity also claims to be registered in Australia.
However, consumers have told ASIC that they have been unable to get their money back after investing through this entity.
ASIC is particularly concerned about the risk to consumers and investors losing money when buying into fake crypto-assets.
The regulator has warned that, during COVID-19, it has seen an increase in reports from consumers losing money in crypto-asset scams. Reports of misconduct received by ASIC from March to May 2020 are up 20% compared to the same period last year.
Investors who have been scammed are typically called or emailed by scammers with an investment opportunity, or approached by their friend, family member, or online romantic partner who tell them how they have made money online and suggests that they try it too. Investors typically sign up to ‘crypto-asset trading’ online and deposit funds into a trading account, either via a crypto wallet or bank account.
When the consumer asks to withdraw their funds, bitcoin scammers either cease all contact, or demand further payment before funds can be released. Often scammers are also seeking to mine personal information from victims to engage in identity fraud.