ASIC warns of identity theft leading to stock theft
The Australian Securities and Investments Commission has seen a sharp increase in the number of reports since August 2024.
The Australian Securities and Investments Commission (ASIC) is warning investors of a “significant increase” in reports of identity theft leading to shares being stolen or sold without victims’ knowledge.
ASIC says ongoing data breaches that have compromised the personal data of large numbers of Australians are allowing fraudsters to successfully use stolen identities to illegally access stocks.
Criminals can use compromised personal data to create stock trades and even bank accounts in other people’s names, using stolen security credentials or holder identification numbers to trade or sell stocks and transfer funds.
While in some cases the data comes from a data breach, other fraudsters use stolen physical mail to create their fake identities.
Many victims discover that their identity and investment portfolio have been compromised after receiving a letter from their share registry or Clearing House’s electronic sub-registry system, also known as CHESS.
Reports of such compromises have increased sharply since August 2024, and ASIC warns that such fraudulent activities are becoming “increasingly sophisticated”.
What to do
ASIC has several recommendations for investors.
- Regularly review stock portfolios and other investment accounts for fraudulent activity.
- Ditch passwords for more secure passphrases for online accounts.
- Enable multi-factor authentication wherever it is available.
- Lock mailboxes to prevent mail theft.
- Make sure your contact information is up to date with all parties.
- 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 broker or bank.
If you or someone you know is a victim of such fraud or scam, contact Scamwatch immediately.
