Common investment scams to watch out for

As digital and alternative investment options become more popular, scammers are quick to jump on the trend, often targeting people who are excited about growing their wealth. Staying informed is the best way to spot these scams early and steer clear of them. 

• Celebrity endorsement scams use the name, image or other characteristics of known celebrities to endorse ‘investments’ in fraudulent, non-existent offers through fake trading platforms. This scam increasingly uses Artificial Intelligence (‘AI’) to generate realistic videos of known celebrities, posted on social media platforms. 
• Business investment opportunities promising high returns, but often lacking proper documentation or transparency, with scammers relying on flashy presentations and complex jargon to lure you into investing in ventures that don’t exist.
• Cryptocurrency scams use fake investment and trading websites, complete with convincing graphics, to tempt you with promises of high returns. 

Spotting the signs of an investment scam 

Investment scams can be cleverly disguised with exciting offers, making them difficult to spot. Here are some key indicators to help you identify a potential scam: 

• Promises of unusually high or guaranteed returns: Be cautious if someone offers investment opportunities promising unusually high or guaranteed returns. These claims are designed to lure you into what seems like a golden opportunity that you can't afford to miss. 
• Pressure to act quickly: Scammers often create a sense of urgency, insisting that you need to ‘act fast or miss out’. This tactic is designed to rush you, making it harder for you to step back, think things through, and make an informed choice.
• Encouragement to open a self-managed super fund (SMSF): If you're urged to open an SMSF solely to make a specific investment, it should raise immediate concerns. This strategy is often used to lead people into risky or fraudulent investments.
• Unsolicited contact from unknown sources: Be sceptical of out-of-the-blue calls, messages or emails from people presenting themselves as investment specialists. These contacts often seek to appear legitimate while attempting to extract personal information or upfront payments, delivering nothing in return. 

Steps to protect yourself

Taking preventive actions is important to protect your super from potential investment scams. Here are key steps you can follow to help keep your retirement savings safe: 

• Understand the situation: If you’re approached with an investment offer that seems too good to be true, it probably is. Be wary of ads popping up on social media platforms like Facebook, WhatsApp, TikTok, Instagram, or YouTube. 
• Take your time: Never rush into a decision, always verify the offer before proceeding. You wouldn't buy a car without checking its history, so apply the same caution to investing. 
• Guard your details and personal information: Personal and superannuation details are precious. Avoid sharing them with strangers or anyone who initiates contact without your request. 
• Seek professional advice: Before making any investment decisions with your super, speak with us. We can help you understand the opportunity and make sure everything checks out—so you can move forward with confidence. 
• Friends & family: If you’re unsure or have any suspicions that things may be too good to be true, speak to a friend or family member for their perspective. 
• Verify registration: Check that the person or entity you’re considering investing with is registered with the Australian Securities and Investments Commission (ASIC). It's a simple step that can protect you from potential loss. You can do this by checking ASIC Registers. 

What to do if you suspect a scam

If something doesn’t feel right, trust your instincts. If you think you may have been targeted by a scam, please contact us straight away - we’re here to help.  Investment scams often target people who are excited about growing their wealth - but with a little know-how and caution, you can protect your financial future with confidence. Real investment opportunities won’t rush or pressure you. So take your time, ask plenty of questions and if something doesn’t feel quite right, call us on 1800 005 166 or email [email protected]. We're here to help you make the most of your super - safely and smartly. 

 

This is general information only and doesn’t take into account your objectives, financial situation or needs. Before making a decision about CareSuper, you should consider if this information is right for you.  
We're giving you this information in good faith. It comes from sources we think are reliable and helpful. However, we can't guarantee its accuracy and take no responsibility for this content, including any errors or omissions.