INVESTMENT SCAMS: AFFECTING EVERYDAY AUSTRALIANS:
WHAT TO LOOK OUT FOR
Have you ever received an unsolicited call or text about an investment? Chances are it is a scam…
Investment scams are causing a huge amount of financial pain for everyday Australians. It may come in the form of a text message from a delivery company or an email that looks like your bank provider asking you to click on a link and update your details. In fact, in 2022 alone more than 157 million dollars has been lost to Investment scams, more than any other type of scam. Investment scams are becoming increasingly hard to spot and can often be presented as well-known companies or legitimate businesses.
In March alone, more than 82 million dollars was lost to investment scams. Men and women aged 45-54 were overwhelmingly targeted, losing the most amount of money according to the ACCC’S scamwatch. Interestingly, males are falling victim to investment scams more than females with 63% of reports coming from men in March. As investment scams are becoming more elaborate and frequent, creating awareness on what to look out for has never been more important.
With the rise in bitcoin there are many wanting to join this fast-growing opportunity. Cryptocurrency is new and less regulated, therefore can leave people vulnerable to scams. Recently an article circulated on social media, falsely claiming a well-known breakfast show presenter had invested in a bitcoin trading platform, making millions of dollars – and that you could too. This is an example of a celebrity endorsed scam relating to bitcoin. Scams target people of all backgrounds and everyone may be vulnerable to a scam at some point.
“It is unfortunate that we are seeing examples of investment scams increase. It is why we are so committed to getting the community talking about scams and creating awareness”
Investments scams are hard to spot and often involve promises of big payouts, quick money or guaranteed returns.
Common types of investment scams:
💰 Cryptocurrency scams
💰 Unsolicited contacts about investing
💰 Celebrity endorsement scams
💰 Ponzi schemes
💰 Investment seminars
💰 Superannuation scams
What to be aware of:
💰Being contacted out of the blue – that can be a call, message on social media or email giving unsolicited advice on investments
💰 High-pressure tactics – these involve being told to act quickly or you’ll miss out
💰 Remember that cryptocurrency investments have fewer regulations and protections
💰Being offered advice on investments from someone you’ve never met before
💰 Celebrity endorsements or images – celebrities don’t often share their financial decisions in public
💰 Being asked to pay funds into different accounts for each transaction
How can you protect yourself?
💰 Seek professional advice from a legal or financial advisor who is registered with ASIC before investing
💰 Do your research and never commit to any investment on the spot.
💰 Ignore unsolicited contact or advice from people you don’t know
💰 Never give your details to an unsolicited caller or reply to suspicious emails or text messages
💰 Do not send any money to someone you have only met online
💰 To check if an investment is legitimate, attempt to call back the company through a number listed on the official website that you have navigated to yourself
💰 Speak to your friends and family to get their opinion before committing to any investment.
What can you do if you have been scammed?
💰Immediately contact your financial institution, they may be able to reverse the payment and stop any further payments from being made.
💰 Change your passwords
💰 Report the scam to the ACCC
💰 Spread the word to your family and friends.
For more helpful advice to protect yourself and your family online, be sure to follow Crime Stoppers Victoria and BankVic on social media so you don’t miss a beat of our Online Safety Series 2022.
