The Australian Securities and Investments Commission (ASIC) is warning consumers about a suspected investment scam involving social media ads for investing opportunities and tips, with consumers then added to WhatsApp groups.

The Commission has received reports from Australian consumers who have invested and paid fees into the suspected investment scam and are now unable to access their money.

ASIC is also aware of an overseas regulator who has issued a public warning about the activity.

The brands of these investing opportunities and associated websites frequently change, but ASIC is warning against two unlicensed promotors – Juhbz and Ptounx. Often these names are used in the website URL. These promotors do not hold an Australian financial services (AFS) licence.

ASIC is encouraging consumers to exercise caution when investing their money, and in particular not to click on investment ads on social platforms offering share trading tips or very high returns, and not to share personal information or identity documents. ASIC also encourages consumers to check they are dealing with businesses who hold an AFSL.

The suspected scammer creates social media ads offering investment tips on share/stock trading for ASX-listed companies and futures contracts.

When consumers click on the ad and register their interest, they are added to a WhatsApp group. They may also receive invitations to join more ‘exclusive’ WhatsApp investment groups.

Through the messaging platform, the suspected scammers offer crypto-asset investment opportunities and promise very high returns. They encourage investors to subscribe to an initial coin offering (ICO) or an initial ‘DEX’ offering (IDO) and/or to start trading crypto-assets via a recommended investment platform website. ASIC is concerned that this is a simulated/scam platform.

Although advertised as investment tips and stock trading for shares and futures, the suspected scammers only offer “trading” in crypto-assets.

Once an investor has provided funds, the investments seemingly produce the publicised high returns. Alternatively, the investment may appear to go down in value so investors are encouraged to deposit additional funds on expectations that the value will recover.

When investors try to withdraw their funds, they are instructed to pay fees or taxes before withdrawals can be processed.

Even if the investor pays the fees, the funds are not paid out. In fact, this is another tactic to get further money from victims.

ASIC has listed the following entities on Moneysmart’s Investor Alert list:

• JUHBZ (juhbz.com, juhbzq.com and more) – Identifies 10 websites and 1 Facebook profile;
• Juhbz (juhbzy.com, juhbzx.com, juhbzt.com and more) – Identifies 5 websites;
• Ptounx (ptounx.com, ptounxb.com and more) – Identifies 5 websites, 1 Facebook profile and 1 YouTube channel; and
• Ptounx (ptounxd.com, ptounxq.com, ptounxf.com and more) – Identifies 6 websites.

These entities are operating without an Australian financial services (AFS) licence; advertising very high investment returns of up to 100% per month; and failing to return funds when requested.