Investment scams: Keeping your assets safe
Scams are still a prominent threat with Australians losing over $1.3 billion to investment fraud in the last year, according to a report made by the Australian Competition and Consumer Commission (ACCC).
The scam landscape
Despite the broad media coverage in recent months covering the impact of increasing scams and what to look for, the Targeting Scams report highlighted increases in reports of financial losses to phishing scams, payment redirection scams and job scams. Most often these scams are implemented through digital device contact such as email or text message. As digital media becomes more enmeshed with our lives through our smartphones and social media, hackers are becoming more sophisticated in leveraging the associated blindspots to scam victims out of investments. In order to protect yourself and your assets, it’s important to be scam aware and remain vigilant to avoid potential threats.
Key identifiers of an investment scam:
- It’s too good to be true
Scammers will try to make you believe you are getting an amazing deal with a high return with little-to-no risk. Usually, the offer is promoted as an exclusive opportunity distinct from standard investment practices. If you are unable to verify the source, please check with your advisor. - Pressure to act fast
Scam messages will often have a sense of urgency to rush you. The offers are framed as time sensitive to prevent you from thinking things through. This may present as persistent messages and sudden deadlines, and you should always call your advisor to verify the legitimacy of an opportunity. - Unsolicited approaches
Be wary of unexpected messaging via phone, email or social media inviting you to participate in a unique investment opportunity. If you have no prior relationship with the person or company, that is a red flag.
What can you do to stay safe?
Don’t allow yourself to be rushed by scammers. They will often impersonate trusted institutions like government organisations, banks or the police to coax you into verifying yourself. Take a breath.
Question everything
Examine the source of the message. Look out for typos or odd formatting. Does the sender’s contact look legitimate? Remember, most trusted institutions will contact you through their secure apps or their official website contact details. Crosscheck with your financial advisor before making any decisions.
Take your time, and don’t give any money or personal information
Contact your bank immediately if you have shared your financial information or noticed any unusual bank activity.
Click here to learn more about Investment scams and how to protect yourself. Visit ScamWatch for more information or reach out to your Pitcher Partners expert today.
