Investment scams are making headlines, and yes, they're the ones Australians are losing the most money to.
The tricky part, they sound really appealing, and they're seriously hard to spot.
So let's break down what's really going on.
Our friend, Tony, here is taking time out, when he scrolls across the opportunity to make a lot of money with very little risk.
You need to be careful, Tony. Don't risk your life savings, no matter how genuine the offer looks.
Investment scammers use sophisticated tactics, like using AI, to produce fake ads, or news articles, with known financial experts, legitimate companies, or even celebrities.
They also have professional-looking websites, and online trading platforms that look like the real deal. And they pressure you to act fast, so they can steal your money before you have the chance to become suspicious.
When you invest with them, they show you fake data to prove your investments are growing.
They can also build your trust by letting you make small withdrawals, but when you try to withdraw all your funds, they come up with reasons not to pay you, and you lose your money.
There are red flags to look out for.
Before you make an investment, take a moment to stop and ask yourself these questions.
Does the opportunity sound too good to be true?
Have you received emails, testimonials, or ads with promises of over-the-top big returns?
Does a scheme have a celebrity endorsement?
If you see any of these red flags, it's a sign that the scammer is out to rob you of your savings.
Slow down, Tony. It's important to never enter into any sort of investment scheme in a hurry.
Check who you're dealing with.
You can check by getting independent legal advice or financial advice from a financial advisor registered with ASIC.
That's the Australian Securities and Investment Commission.
You can check whether the company or website you are dealing with is named on the Moneysmart Investor Alert List. If they are, it's a scam.
You can check that the address and contact details of the company you are in contact with are correct on publicly listed directories. If they're not, it's a scam.
If the offer you've had to buy shares is well below market value, it's probably a scam.
And if you're told the shares are being released pre-initial public offering, be even more cautious.
Scammers can impersonate real Australian financial service licence holders, so it's important to check that they're the correct holder of the licence.
Do this by reviewing the Financial Advisors Register, and the Authorised Representatives Register.
Call the organisation on the number you find independently to verify your contact, and that the offer is real.
And if, like Tony, you find the scammers are pressuring you to act fast, back off. Remember, scammers are skilled at convincing you that the investment is real, the returns are high, and the risks are low.
And finally, it's important to protect yourself.
Really good work, Tony. That company is on the alert list. It's a scam.
If you've been the target of a scam, call your bank immediately to stop any further losses.
Cut all contact with the fake company, and be on the lookout for anyone offering to help you get your money back. They're usually just another scam.
And report the scam to Scamwatch.
Your report will help us to protect others.
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