The Australian Securities and Investments Commission (ASIC) launched a fake website on Sunday – April Fool’s Day – to alert investors to the dangers of investment opportunities on the internet.

The website www.electroharvest.com mirrors the tactics of stock market con artists, touting an investment opportunity offering exceptional risk-free returns.

Visitors are told their ordinary power bills will be cut by 37% if they invest in a private equity company promoting an electricity device.

Executive Director of Consumer Protection Greg Tanzer says ASIC recognises how difficult it is for consumers to differentiate between genuine and scam investment opportunities.

Although many scam websites promote seemingly outrageous products or services, they are otherwise made to look credible and authoritative.

In developing the ElectroHarvest website, ASIC employed some of the common techniques used by fraudsters.

Credibility is added through testimonials and biographies of people who don’t exist. There is a sense of urgency in statements like “sold out” and “hurry, invest today”, and it offers extremely high returns with low risks guaranteed, and no prospectus offered.