Video transcript: Investment scam (Word, 28KB)
How the scam works
Scammers typically offer ‘get rich quick’ schemes, investments-based on ‘secret’ information or special software. They claim to be able to predict the outcomes of sports or share trading. After you pay their expensive fees, you will discover that their claims of past performance and guarantees about future results are false.
Other examples of investment scams include:
- real estate investments where scammers profit by selling property at inflated prices; they often promote these through investment seminars
- share promotions, urging you to buy shares in a thinly traded company
- early access to your superannuation, often through a self-managed super fund. Scammers take a large cut for themselves, and you may risk accessing your super illegally
- dodgy tax schemes that promise large deductions or refunds.
- Do not let anyone pressure you into making investment decisions.
- Ask for written information and always get independent financial advice.
- Check that the company is registered with the Australian Securities and Investments Commission and that the advisor is a licensed financial advisor. For more information, visit the MoneySmart website.