The Australian Securities and Investments Commission (ASIC) has issued a warning to investors after a rise in reports of stolen shares resulting from identity theft.
The corporate regulator noted a “significant increase” in sophisticated fraud since August and urged anyone who has been a victim of identity theft to review their portfolio accounts and security settings.
“Fraudsters are impersonating individuals and stealing their shares, with many victims unaware their shares have been transferred or sold until they receive a confirmation letter in the mail from a share registry or the Clearing House Electronic Subregister System,” ASIC said.
“Australians previously affected by data breaches should be particularly alert to the increased likelihood of identity theft, given the availability of their personal information online.”
To that end, it noted a typical scam may feature fraudsters using stolen personal information to open fake share trading accounts and sell shares without the real owner’s knowledge. They often use fake or stolen identification documents, along with illegally obtained security reference or holder identification numbers.
Further it recognised these individuals may also create fake bank accounts to receive the proceeds from these sales, with personal information often obtained through data breaches or stolen mail.
To help prevent such scams, the regulator recommended using strong passphrases instead of simple passwords, enabling multi-factor authentication, and regularly checking share portfolios and investment accounts, including superannuation, for any suspicious activity.
Additionally, it urged investors to lock their letterboxes to protect against mail theft, keep their contact details updated with financial institutions and remain cautious if they receive unexpected notifications about their accounts or shares.
People who suspect they may have fallen victim to a scam have been encouraged to report the incident to Scamwatch and contact IDCARE, a free service that helps develop specific response plans for those whose identities have been compromised.
The warning follows an ASIC investigation that resulted in two Melbourne men facing court on charges related to operating fraudulent investment websites targeting SMSF investors.
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