How to avoid investment scams

Macquarie BankNovember 04, 2022

Investment scams are becoming more pervasive and prevalent and though many of us are aware of their existence, scammers are finding smarter ways to access your money. The good news is, you can protect yourself with simple and common-sense measures.

Every scam is different, but there are some tell-tale signs to watch out for, including:

  1. Promise of low risk, but high returns.
  2. You’re asked to transfer funds quickly and directly to an institution.
  3. High-pressure sales tactics, including from someone purporting to be from a verified institution.
  4. You’re contacted ‘cold’ by a person or organisation you’ve never dealt with.
  5. You’re contacted by someone purporting to be from a financial institution, but they got your details from a comparison site you used.
  6. Requests for funds to be sent to a cryptocurrency exchange, or a request to create a cryptocurrency account for non-cryptocurrency assets.
  7. Celebrity endorsements of an investment opportunity.
  8. Invitation to deposit into multiple accounts.
  9. No Australian Financial Services Licence (AFSL) or Australian Business Number (ABN), or claims they’re not needed.
  10. Investment prospectus not registered with the Australian Securities and Investment Commission (ASIC).
  11. Links in emails or text messages sending you to logins or requesting personal details.
  12. Requests for remote access to your computer to set up accounts and make transactions.

Ultimately, the golden rule is that if an offer sounds too good to be true, it’s likely to be a scam.

Click here to read the full article on the Macquarie Bank website.

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This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Version 4.0