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ASIC – Investor Scam Checklist and Tips
ASIC has unveiled an investor alert tool – ASIC Check Before You Invest.
Before you invest your money, check basic facts about what you are investing in and who you are investing with.
What to do
- Are they licensed – is the company or person licensed by ASIC to advise on or offer this investment?
- How does the investment work – can you explain the investment to someone else?
- Is it a Scam or a real investment – are there signs of an investment scam?
- What if something goes wrong – how do you complain?
Why you should take 5 minutes to check before investing
The checklists and tools are aimed at helping people make informed investment choices to avoid potential fraud, scams, imposter investment schemes, as well as unlicensed financial operators and investment companies.
Consumers are continually targeted by fraudsters, so having access to the right information can help consumers better protect themselves.
These scams and unlicensed operators can cause severe financial losses and create mental health issues in consumers through fraud and bad management like Melissa Caddick Fraudster – Court information who stole millions from her clients, close friends and family.
Investor Alert list
If someone contacts you to offer an investment opportunity or you find a suspicious website, be wary. It could be a scam. This investor alert List can help you know which companies, businesses and websites (or ‘entities’) are not to be trusted.
For comprehensive information on combating scams, please visit scamwatch.gov.au and explore the resources available at the National Anti-Scam Centre.
Tips to Protect yourself from Scams
Scammers are skilled at tricking you out of your money. Knowing the signs of a scam can help you identify when something doesn’t feel right.
Scamwatch, run by the National Anti-Scams Centre (NASC) says:
- Stop – Don’t give money or personal information to anyone if unsure
- Think – Ask yourself, could the message or call be fake?
- Protect – Act quickly if something feels wrong
If you think you’ve been scammed, act fast:
- Protect your personal information – Use strong passwords. Shred your personal documents. Secure your devices with security software and use secure websites. Monitor your bank transactions, credit card and online shopping accounts.
- Do your own research – Check before you invest — Always check any investment opportunity to make sure it’s real, especially if approached through social media. Ask questions — Be wary if someone avoids answering questions about the legitimacy of their offer. Get advice — Get independent financial advice before you invest.
- Don’t rush into a quick decision – Don’t click — on any links in suspicious text messages or emails. Be wary of unexpected contact — particularly if you’ve been contacted through social media. You don’t know who you’re dealing with. Take your time — Don’t be pressured to make a quick decision with your money you may regret later. Trust your instincts — If an offer sounds too good to be true, it probably is. Ask someone — If you’re unsure about something, talk to someone you trust about it. They may see red flags that you don’t. Check payments — Be suspicious if you’re asked to pay for something with gift cards or cryptocurrency
How to spot a financial scam
Here are some red flags to help you to identify a financial scam from something legitimate.
Remember, scammers are smart and know how to be convincing. Always be cautious when it comes to trusting someone with your money.
An investment offer may be a scam if the person:
- does not have an Australian Financial Services (AFS) licence
- or says they don’t need one
- constantly contacts you (phone calls, texts or emails) and pressures you to make a quick decision
- uses the name of a reputable organisation to gain credibility (for example, NASDAQ, Bloomberg)
- has an investment prospectus that isn’t registered with ASIC
- offers you very high investment returns
If you spot any of these signs, hang up the phone or delete the email. If you manage to record any of the scammer’s details, report them to ASIC. Learn more about how investment scams work.
For more information visit https://moneysmart.gov.au/