AVOIDING INVESTMENT SCAMS - Spotting the Red Flags.

Updated: Nov 20

Australians lose in excess of $945 Million a year to investment scams - WOW!!

Scammers are becoming more and more sophisticated making it harder for the general public to identify them from legitimate opportunities available.

So, how can you spot the Red Flags?

It Seems too good to be true. There will often be a promise of low-risk investment with higher than average return. Will often involve shares, foreign currency, treasury bonds, term deposits, real-estate and cryptocurrencies.
Unsolicited advice. Firstly, NEVER TAKE INVESTMENT ADVICE FROM SOMEONE YOU MET ONLINE. Always do you 'due diligence', research for yourself and speak to a qualified specialist in the area of investment (eg Financial Advisor) to verify the validity of the opportunity.
Celebrity endorsements. The evolution of AI is creating a boom in fake stories using celebrity images/videos to endorse opportunities in online advertising.
Alternative payment methods. Scammers will often request payments via methods such as cryptocurrencies, gift cards and money transfers like Western Union.
Remote access requests. Criminals may ask you to download software under the premise that they need to "set up a trading platform". This could infect your computer or device and give the criminals access to your information or worse like your bank accounts.
Unexpected contact from a 'financial advisor'. Scammers often claim to be from a bank, financial institution or investment company. Sending fake prospectus or link to a website that copies the legitimate company's branding.

Confirm an offer is legitimate by calling the company on their official, publicly listed phone number.
Check the Australian Securities & Investments Commission (ASIC) website at asic.gov.au to confirm the person offering the advice is licensed.
Check the investor alert list on teh Moneysmart website at moneysmart.gov.au for companies and websites that have been flagged as scams.

Call your bank IMMEDIATELY and ask for the Fraud Team.
Change the passwords on all your devices and online accounts.
Contact IDCare at idcare.org, an organisation that supports people impacted by scams, fraud and identity theft.

Ref: >> Australian Government's scamwatch Targeting Scams Report, 2024.

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