Investment scams

Scammers use crypto-asset (virtual currency) investments, like Bitcoin or Ether, because they are hard to track.

Crypto is a very high risk and volatile investment. The value can go up or down quickly and there are no guaranteed returns.

If you lose your money to a crypto scam, it’s unlikely you will ever get your money back.

Find out more about crypto scams on the ASIC’s MoneySmart website.

Scammers use the image, name and characteristics of famous people without their permission, to get you to 'invest'. 

These can be very realistic, as scammers use artificial intelligence (AI) to create 'deepfakes' of the person. These images and voices can be very hard to recognise as fake. 

The celebrities’ images are often used in:

• ads on social media or YouTube
• fake news stories that appear to be from a well-known news company.

These ads or stories usually link to scam investment or trading websites that often use cryptocurrency.

The scammer uses a fake dating profile on social media, a dating website or app.

The scammer then moves the chat to a different, ‘more private’ chat site such as WhatsApp, Google Hangouts or WeChat.

Scammers say things to gain your trust before they tell you about an investment opportunity. Often, they say they have made a lot of money very quickly. They urge you to invest a small amount and you may see a quick return. The scammer then encourages you to invest larger amounts.

If you stop investing or want to withdraw your money, the scammer will stop contacting you. The investment platform will no longer be available, or you may be told the investment failed.

Ponzi schemes are investment scams that use money collected from new investors to pay old investors. There is no real investment. Find out more about Ponzi schemes on the ASIC’s MoneySmart website.

The scammer pretends to be from a financial service company or a bank offering low risk investment products such as government bonds and fixed term loans. They demonstrate specialised financial knowledge, provide convincing documents, websites, and information, which are all fake.

Find out more about imposter bond investment scams on ASIC’s MoneySmart website.

An initial public offering (IPO) involves a company raising capital by offering shares to the public for the first time. Scammers impersonate Australian companies, including banks, to promote offers that coincide with legitimate company listings. They don’t have any association with the companies.

Superannuation scams offer early access to your super fund, often through a self-managed super fund or for a fee. The scammer may pose as a financial adviser.

Find more information on superannuation scams here.

Read more about withdrawing and using your super.

These scams are a form of gambling made to look like real investments. Most do not work as promised and buyers cannot get their money back. There are different versions of this scam.

Computer prediction software

The scammer sells you a software program to predict sporting results promising high returns.

The information used to make the predictions can be found in the betting pages of your local newspaper at very little cost.

Betting syndicates

The scammer asks you to become a member of a betting syndicate for a joining fee (often over $15 000). You are required to make ongoing deposits to maintain the balance of the account.

The scammer tells you that they will use funds in the account to place bets on behalf of the syndicate. You, and other syndicate members' are promised a percentage of the profits, but the scammer simply steals your money.

Sports investment

These scams are promoted as business opportunities or investments at trade fairs, shows or via the internet. 

The scammer uses technical or financial terms such as 'sports arbitrage',' sports betting', 'sports wagering', 'sports tipping' or 'sports trading' to make these scams look like legitimate investments.