Spotting and avoiding investment scams
If you think an offer is suspect, stop for a second. Run through this check list. And never give up your bank details or make payments.
Unexpected contact
Any cold calling by phone, email, online or post should be treated as highly suspicious. Don’t forget, you can always hang up.
Unrealistic returns
The promise of high returns from alternative or unregulated investments should raise alarms.
Flattery and time pressures
If it’s an invitation-only opportunity or you need to act quickly. They may even ask you to keep quiet about it too. Be very wary and don’t make hasty decisions.
Professional
Fraudsters will use glossy brochures, websites, fake reviews, or trained callers with scripts... anything they can to appear convincing. Check on ASIC's Banned and Disqualified list to see if the firm or individual is unregulated.
On the list
Fraudsters share lists of previous scam victims to commit recovery fraud. They contact people on these lists, to recover lost monies, or sell their worthless investments - and charge an advance fee.
Common investment scams
These include anything from carbon credits and fine wines, to storage, land and gold and jewels, as well as investments in shares, bonds, cryptocurrency, foreign exchange and binary options.
