Investment and trading scams
Scammers impersonate legitimate investment and finance companies. They also use convincing marketing and new technology to make their investment sound too good to miss.
STOP.
For investments and trading, don't make the payment if:
- The company or person you’re dealing with doesn’t have an AFS license.
- You’ve received unexpected contact from someone claiming to be investment manager or broker.
- The investment “opportunity” was introduced through a social media advert, celebrity endorsement or an online influencer.
- You’ve met someone online and have been encouraged to invest.
- You’ve been encouraged to invest by someone you know, including friends, family or acquaintances.
- You’ve been promised high, quick or ‘guaranteed’ returns, or are made to feel rushed.
- You’re not in full control of your own crypto wallet or trading account.
- You’re asked to transfer your funds to multiple accounts, or the BSB is an unexpected destination.
CHECK.
Before making the payment, check:
- The company has an AFS license - a company must have one to promote or deal in a financial product.
- AFCA's website for contact details of financial services businesses and use these details to reach out to them directly to check the legitimacy of the offer.
- The BSB – if you're transferring money to invest in bank bonds or term deposits, the BSB should be for that bank. Check the correct BSB on the Australian Payments Network.
- For reviews and warnings; search the company name with the word "scam".
- ASIC’s investor alert list.
- Any Bonds prospectus you've been provided is on the ASIC Offer Notice Board and matches an existing offer. If there’s even the slightest difference, do not proceed.
Check with Credit Union SA by calling 13 8777 if you’re still unsure. We’re here to help and may be able to spot something you’ve missed.
PROTECT.
If you think you have been the victim of a scam, you should:
- Contact Credit Union SA immediately on 13 8777.
- Report it to ASIC and the police via cyber.gov.au.
- Stop sending money! Be wary of secondary scams or offers to recover your money.
- Change your passwords and PINs straight away if you suspect your security has been compromised.
- Contact IDCARE on 1800 595 160 or via idcare.org. IDCARE is a free, Government-funded service that provides support to victims of identity crime.
- Visit the Scamwatch or MoneySmart websites for more information on scams.
STOP. CHECK. PROTECT.
Protect yourself from scams.
If you feel unsure, rushed or pressured into making a payment – it’s probably a scam!
Types of investment and trading scams
Scammers use crypto-assets like bitcoin or ether because they are not easily recovered. Crypto can be sent overseas quickly with limited oversight.
You may receive unexpected contact, a recommendation from someone familiar including family and friends, an influencer, celebrity endorsement or somebody you've met online. You may be promised high, quick or guaranteed returns and given the guidance of a broker or trader.
To avoid this scam:
- Check the legitimacy of an investment. A company must have an AFS license to promote or deal in a financial product. Search for the token or crypto exchange name on Google, with the word 'scam'.
Ponzi schemes are investment scams that use money collected from new investors to pay old investors - which can make the investment seem legitimate. They rely on recruiting others, including friends, family and community and can also exploit people’s faith.
There may be promises of high, quick or guaranteed returns, and the promoter may have received dividends. You are encouraged to reinvest your dividends, or you have trouble withdrawing your funds.
To avoid this scam:
- Check the legitimacy of an investment. A company must have an AFS license to promote or deal in a financial product.
Scammers pose as financial services companies or banks and offer fake 'low-risk' investment products, like bonds or fixed term deposit. Because scammers impersonate real investment providers in these scams, they can be convincing.
The fake websites often lack the expected detail, the BSB provided may not match the expected bank, you may be asked to transfer to multiple accounts or details may change.
To avoid this scam:
- Follow ASIC's "Check before you invest" guide and always compare a prospectus is on the ASIC Offer Notice Board and matches an existing offer.
A scammer may use "phishing" tactics by impersonating a financial firm, such as a bank or super fund aiming to get your personal details to take over your super account.
Other super scams may include offers to quickly and easily access your super early by moving it to a Self Managed Super Fund (SMSF), which may not satisfy a condition of release. This process is illegal, and you will end up paying additional tax and penalties.
To avoid this scam:
- Contact your super fund on a number you've independently sourced and verified to validate any supposed contact, or conditions relevent to early release.
Scammers build trusting relationships online, often using 'love bombing' tactics; lots of contact and compliments, maybe even declaring love. Once the scammer feels like they have your trust, the talk turns to finances and investment opportunities.
They may claim that they, or their friend or relative is an expert trader, offering 'proof' of their profits. In reality, the 'trading platforms' are being manipulated and your funds are redirected to the scammer from the start.
To avoid this scam:
- Stop communicating with anyone you've met online if the talk turns to money, financial help or investments.
Security
Learn moreAt Credit Union SA, we use the latest technology to keep your identity, your information and your money safe, however you choose to bank with us.
Call us
13 8777We're here to answer any questions you might have - make sure you have your Access Code ready!