Super and investment scams target your personal wealth by convincing you to invest in fake schemes and companies.
A super scam is when someone tries to access your super and withdraw your money. An investment scam is when someone tries to convince you that an investment is real so you invest your money in whatever it is they are offering.
This article will help you stay informed on the most common types of investment scams and arm you with the facts needed to make smart investment decisions. Most of these scams start with an unexpected call claiming to be from a superannuation or financial service organisation.
Common super and investment scams to look out for
- You receive an offer from a financial adviser or a scammer posing as one. The scammer may ask you to agree to a story to ensure the early release of your super and then, acting as your financial adviser, they’ll deceive your super fund into paying out your super benefits directly to them. Once they have your money, the scammer may take large 'fees' out of the released fund or leave you with nothing at all.
- You receive a call or email from a stockbroker offering amazing investment opportunities with high returns and a low risk. In reality, this ‘stockbroker’ is unregistered and intends to steal all the money you invest.
- You receive an insider tip about a company about to take off and are encouraged to buy shares. What appears to be a once-in-a-lifetime opportunity, is simply a pyramid scheme designed to raise money through the investments of many people.
- You’re invited to an investment seminar with free advice, food and drinks. At the event, you’re persuaded to invest in high-risk strategies that turn out to have hidden fees and undisclosed charges. You might also be encouraged to purchase expensive investment strategy books.
Super scams
Scammers are using fake vouchers, financial assistance claims or general information as bait to ‘phish’ for your personal information, including your superannuation. They may try to contact you by cold calling or may send a text message or email containing malicious links.
Scammers can disguise themselves as well-known businesses and government agencies such as myGov, the Department of Health and the ATO, to trick you into sharing your personal information. Once they have your details, they can pretend to be you and access your super.
Keep an eye out for any of the following:
- advertisements promoting early access to super
- offers to 'take control' of your super
- offers to move your super to a self-managed super fund (SMSF) so you can access the money
- offers of quick and easy ways to access or 'unlock' super
- asking for your personal and financial information
- luring you into opening malicious links or attachments
- gaining remote access to your computer
- seeking payment for a fake service or something you did not purchase
Protecting yourself from scams
Having trouble trying to spot a super or investment scam? How can you help protect yourself from scammers?
The following is a list of key things you should be looking out for to ensure you don’t fall victim to a scammer.
- Never give information about your superannuation to someone who has contacted you, even when you think it is a trusted organisation. Just hang up and verify their identity by calling the relevant organisation directly. Never provide your account login details to a third party.
- Don’t click on hyperlinks in text/social media messages or emails, even if they appear to come from a trusted source. IOOF will never send you an email asking for your password, or with a direct link to a login page to access your account.
- Always be suspicious of investment opportunities that promise a high return with little or no risk—If it sounds good to be true, then it probably is.
- Check if a financial advisor is registered via the ASIC website. Any person or business offering advice about financial products must hold an Australian Financial Services licence from ASIC.
- If in doubt, you can check MoneySmart’s list of companies you should not deal with. If the company that called you is on the list, do not deal with them.
- Never let anyone pressure you into making decisions about your money or investments and never commit to any investment at a seminar. Always get independent legal or financial advice first.
What to do if you’re worried about scams
We’re committed to protecting your super and investment savings and have strong measures in place to detect suspicious behaviour - but if you believe you may have fallen victim to a scam, please contact the AMA Financial Services team on 1800 262 346 or email advice@amafp.com.au.
A.M.A. Services (WA) Pty Ltd trading as AMA Financial Services 47 008 671 458 is a Corporate Authorised Representative of Consultum Financial Advisers Pty Ltd. ABN 65 006 373 995 l AFSL 230323.
This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from a financial adviser and seek tax advice from a registered tax agent. Information is current at the date of issue and may change. You should obtain a copy of the Product Disclosure Statement available from the product provider or your financial adviser and consider this before you acquire a financial product. This information and certain references, where indicated, are taken from sources believed to be accurate and correct. To the extent permitted by the Law, Consultum, its representatives, officers and employees accept no liability for any person that relies upon the information contained herein. From time to time, we may send you informative updates and details of the range of services we can provide. If you no longer want to receive this information, please contact our office to opt out.