Investment fraud

Identifying investment fraud

Investment fraud is a type of scam in which the criminal appear to offer a legitimate investment opportunity, often yielding high returns over a short time frame.

This type of fraud can be advertised on social media sites, come to you via a phone call or email and may be, or appear to be, an offer from someone you trust.

With investment fraud, the scam is often highly sophisticated, involving many offenders playing different roles. These scams use websites with fake reviews and often have criminals with investment knowledge posing as investment brokers. The fake brokers then build a rapport through regular contact over email and phone creating a perception of legitimacy.

Investors are encouraged to invest small at first where they are often provided access to falsified strong returns, building their confidence to invest larger amounts. Once the offenders have amassed a large amount of money from a large amount of people, the website and all contact will disappear, along with the victim’s investment.

More information on these types of scams can be found at www.moneysmart.gov.au

How can I protect myself?

• Stick to reputable investment companies using traditional investment methods
• Obtain independent financial advice before making an investment
• Talk about investment fraud with your friends and family: You may learn something from their experience, or you may prevent someone else from becoming a victim
• Report suspected fraud to the Australian Securities and Investments Commission via www.moneysmart.gov.au or by calling 1300 300 630
• Do not answer suspected spam mobile phone calls. Hang up on unsolicited telephone calls offering overseas investments
• Be aware of investment companies attempting to gain access to your phone or computer using software such as AnyDesk, TeamViewer, LogMeIn
• If you are considering investing with a company, check that they have a valid Australian Financial Services Licence at www.moneysmart.gov.au

Visit www.moneysmart.gov.au or call 1300 300 630 for further information.