On Tuesday, the Australian Securities and Investments Commission (ASIC) issued a warning to investors about a significant increase in reports of stolen shares due to identity theft.
ASIC Warns of ‘Significant Increase’ in Reports of Stolen Shares
The regulator explained in a release that fraudsters are impersonating individuals and stealing their shares, often leaving victims unaware until they receive unexpected notifications from share registries or the Clearing House Electronic Subregister System (CHESS).
According to ASIC, there has been a significant increase in reports of stolen shares since August 2024.
The regulator said investors should be vigilant and review their share portfolios regularly for unauthorised activity.
Furthermore, they warned that Australians affected by data breaches should be particularly alert to the increased risk of identity theft, as their personal information may be readily available online.
Fraudsters can gather personal information through various methods, including online data breaches and stealing mail from letterboxes.
They may then use this information to create fake accounts and sell stolen shares, often fraudulently opening bank accounts to receive the proceeds.
ASIC recommends several steps to protect against share sale fraud, such as using strong passphrases, enabling multi-factor authentication, locking letterboxes, and regularly reviewing accounts for suspicious activity.
If investors notice any unexpected or unusual activity, ASIC said they should act promptly by contacting their stockbroker, share registry, or bank and changing their passwords.
They add that reporting incidents to Scamwatch and contacting IDCARE can provide assistance in developing a response plan and preventing further harm. Victims of fraud may also request a ban period on their consumer credit report to protect against unauthorised credit checks.
