Data from scamwatch.com.au shows that Australians are losing millions of dollars to scams every year. In 2023 alone, over $455m was lost, including over $275m to investment scams.

The most affected age group were those aged 65+, losing over $114m to scams closely followed those age 55-64, losing over $94m.

Being scammed is devastating for victims, their families, carers and communities, especially vulnerable people and those who rely on government services such as those in retirement who receive the age pension.

Here at Heartland, we are encouraging our customers to know how investment scams work and what warning signs to look out for.

What is an investment scam?

Investment scams can be hard to spot. Scammers may use convincing marketing and new technology to make an investment sound like it is too good to miss by promising big payouts with little or no risk. They will often use pressure tactics to get you to act fast, so they can steal your money.

Types of investment scams

• Crypto scams
• Ponzi schemes
• Imposter bonds
• Fake initial public offering scams
• Superannuation
• Romance bailing
• Celebrity endorsement scams
• Gambling and sports betting

For more details about what these scams are and how they work take a look at the Money Smart website: Financial scams – Moneysmart.gov.au.

What precautions should I take?

Always stop, think, and check before you act.

Before you invest always:

• Get independent legal or financial advice from an adviser registered with ASIC.
• Do your due diligence to make sure you know who you’re dealing with by checking the International Organization of Securities Commission’s (IOSCO) investor alerts and ASIC’s new investor alert list.
• Check that the person you are dealing with works for the company they say they do and has an Australian financial services (AFS) license.
• Check that the address and contact details for the company are correct on public listed directories.
• Check when the company’s domain name was registered. A new website for an existing company is a red flag.
• Check the company’s share listing on the stock exchange. If the offer received is well below the market value shown – it’s a scam. If you are told the shares are being released pre – initial public offering (IPO) be even more cautious.
• Use ASIC’s investor checklist.

Find out more investment scams and the warning signs here.

Information sources:

• scamwatch.gov.au
• asic.gov.au
• counterfraud.gov.au

Information provided is accurate as of 9 February 2024 and may change from time to time.