ASIC Warns Against Fake IPO Investment Frauds

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ASIC Warns Against Fake IPO Investment Frauds

<p class="MsoNormal">The Australian Securities and Exchange Commission (<a href="https://www.financemagnates.com/terms/a/asic/" target="_blank" id="dfb41d67-b79e-4b09-b365-1f341b85a51b_1" class="terms__main-term">ASIC</a>) issued a warning on Wednesday regarding the increased number of fake initial public offering (<a href="https://www.financemagnates.com/tag/ipo/">IPO</a>) investment scams targeting consumers and individual investors.</p><p class="MsoNormal">According to the local market financial watchdog, scammers are impersonating licensed Australian firms and promoting fake offerings. Recently, investors were offered the opportunity to invest in Porsche's IPO, which took place on the Frankfurt Stock Exchange and Care A2's pre-IPO on the Australian trading floor. The fake offers overlapped with the actual listings and led to a loss of funds. ASIC honestly admits that after transferring money to scammers, it is no longer able to help consumers.</p><p class="MsoNormal">"A company that promotes an IPO in Australia must lodge a prospectus with ASIC. It may be a scam if: the company has not lodged a prospectus with ASIC (you can check this for free through ASIC Connect), the bank accounts details do not directly match the entity you are investing with and the document contains email addresses which don't correspond with relevant corporate email addresses," ASIC commented in the press release.</p><p class="MsoNormal"><a href="https://www.financemagnates.com/tag/asic/">ASIC</a> warns that investing at the Pre-IPO stage may involve higher risks for retail traders. Offerings targeting the general public, especially distributed by emails, tend to be illegal and fraudulent. Therefore, the regulator recommends taking extreme caution when investing.</p><p class="MsoNormal">Scams Awareness Week in Australia</p><p class="MsoNormal">The Australian Competition & Consumer Commission (ACCC) and ASIC <a href="https://www.financemagnates.com/cryptocurrency/asic-shows-how-to-spot-a-cryptocurrency-scam/">announced</a> the start of Scams Awareness Week 2022 on Monday. The regulator publishes information on recognizing and avoiding particular investment frauds throughout the whole week. Firstly, it warned against cryptocurrency scammers and has now turned its attention to fake IPOs.</p><p class="MsoNormal">The Australian financial market watchdog continues its efforts to protect retail investors better. Last week, it <a href="https://www.financemagnates.com/forex/asic-heralds-12-enforcement-priorities-for-2023-including-crypto/">heralded</a> a list of 12 'Enforcement Priorities' for next year, including greenwashing, social media misinformation and <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_1" class="terms__secondary-term">cryptocurrencies</a>. In August, the market governor <a href="https://www.financemagnates.com/forex/regulation/asic-warns-brokers-for-offering-high-risk-products-to-retail-investors/">asked</a> brokers to 'reconsider' offering high-risk trading products to protect consumers.</p>

This article was written by Damian Chmiel at www.financemagnates.com.

Source: ASIC Warns Against Fake IPO Investment Frauds