ASIC warns of identity theft leading to share theft
The Australian Securities and Investments Commission has seen a sharp increase in reports since August 2024.
The Australian Securities and Investments Commission (ASIC) is warning investors to be vigilant following a “significant increase” in reports of identity theft leading to shares being stolen or sold without victims knowing.
According to ASIC, ongoing data breaches that have compromised the personal data of large numbers of Australians are leading to fraudsters being able to successfully use stolen identities to illegally access stocks.
Criminals can use compromised personal data to create stock transactions and even bank accounts in other people’s names, using stolen security references or holder identification numbers to trade or sell stocks and transfer funds.
While in some cases the data is obtained from a data breach, other scammers use stolen physical mail to create false identities.
Many victims only discover that their identities and investment portfolios have been compromised after receiving a letter from their stock registry or the Clearing House Electronic Subregistration System, also known as CHESS.
Reports of this type of compromise have increased sharply since August 2024, with ASIC warning that such fraudulent activity is becoming “increasingly sophisticated”.
to do
ASIC has several recommendations for investors.
- Periodically review stock portfolios and other investment accounts for fraudulent activity.
- Get rid of passwords and opt for more secure passphrases for online accounts.
- Enable multi-factor authentication whenever available.
- Lock mailboxes to prevent mail theft.
- Please ensure your contact details are up to date with all parties.
- Please be on the lookout for correspondence regarding the creation of new accounts in your name.
- If you think something is wrong, act quickly and contact your stockbroker or bank.
If you or someone you know is a victim of such fraud or scam, please contact Scamwatch immediately.
