Check before you invest

Last updated: 17 August 2026

Before you invest your money, take time to check who you’re dealing with and what you’re investing in.

Your quick investment scam checklist

According to the National Anti-Scam Centre (NASC), Australians reported losing more than $837 million to investment scams in 2025. This checklist can help protect you.

STOP

Before you invest, stop and ask yourself: 

• Am I being pressured to invest quickly? 
• Does the investment promise high returns with little or no risk? 
• Am I relying on testimonials, celebrity endorsements, social media posts or online reviews? 
• Have I taken time to research the investment independently?  

CHECK

Before you invest, check: 

• The company is licensed by ASIC to advise on or offer the investment. 
• The company is not fake or impersonating a real company or licensee. 
• You have independently verified the company’s contact details. 
• You understand how the investment works – you can explain how the investment makes money and where the returns come from. 
• You have read the offer documents. 
• If it might be an investment scam or a scam website. 
• Recent scam warnings from ASIC’s scams hub and recent alerts from the MoneySmart Investor Alert List.

PROTECT

Protect yourself by making sure you know: 

• What to do if something goes wrong. 
• How to make a complaint about the financial product or service. 
• The warning signs of investment scams and investment scam journeys. 
• How to report a scam. 

STOP: Watch out for investment scams

Investment scams are serious crimes and scammers are sophisticated. They use professional-looking websites, social media, advertising and AI technology to make scams appear genuine. 

If an offer sounds too good to be true – like easy money or guaranteed returns – stop and step back. 

Understanding how investment scams work can help you avoid losing money. It’s important to know that anyone can be a victim. 

Watch out for these red flags, if the person or company offering the investment: 

• does not have an Australian financial services (AFS) license 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  
• 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, document these to note when you report the scam. 

Learn more about how investment scams work.

CHECK: Is the company/person real and licensed or authorised

In Australia, companies or people offering investments must have an Australian Financial Services (AFS) licence or be authorised by someone who does.

An AFS licence:

• controls what kinds of financial products they can sell
• gives better protection to investors if things go wrong 

It's important to know that holding an AFS licence doesn't mean that ASIC endorses the company, financial product, or advice. It doesn't guarantee the investment is safe or that you won’t lose money from dealing with them.

With a proliferation of AI-generated scam websites, online reviews, videos, and social media posts, it’s also important to not rely on contact details, links or phone numbers provided in an investment offer, text message, email, social media post or online advertisement. 

Scammers misuse AFS licence details by claiming to hold a licence, using another entity’s licence number, or impersonating a licensed financial services business. 

Before investing, make sure you verify the licence holder’s name and number on ASIC’s professional registers, and ensure those details match the business or investment opportunity being promoted. Relying solely on advertisements, websites or online search results can put consumers at risk.  

How to check on a company or person

If they say they are:	Check this:
Licensed by ASIC (AFS licence) An authorised representative for a licensee (with an AFS licence) Offering an investment in a registered managed investment scheme	ASIC's Professional Registers Search enter the name, Australian Business Number, Australian Company Number or licence number select Register: Australian financial services licensee in drop-down menu if a website URL is listed in the register, check that it matches any website URL you have been using ASIC Connect search within: Banned and Disqualified see if they have been banned from giving financial advice or managing a company Moneysmart Investor Alert List this is a list of suspicious companies, businesses and websites. They may be unlicensed or impersonating a real company or licensee.
A financial adviser who can advise you on, or sell you, an investment	Financial advisers register enter name, adviser number, or Australian Business Number check what they are authorised to advise on

CHECK: Do you understand the investment?

Make sure you understand how the investment works. A good way to test this is to see if you can easily explain the investment to someone else.

Ensure you know, and are comfortable with, how much risk you are taking on. Generally, the higher the projected return, the higher the risk involved.

If you can’t clearly explain how the investment works, or if the information doesn’t add up or make sense, you may be at risk of being deceived into investing in a fraudulent or high risk scheme.

For more tips on how to research an investment, see how to invest.

Find and read the offer documents

Before investing, get the official documents, like a product disclosure statement (PDS) or a prospectus.

Get the PDS or prospectus from:

• the public website for the company
• your financial adviser
• searching ASIC’s Offer Notice Board

Learn more about how to read a prospectus (under 'Initial public offerings').

Be wary of high-risk or unregulated investments

Investments not regulated by ASIC include crypto or digital assets that are not financial products, direct investment in real estate or precious metals, and international investments not offered by licensed Australian providers.

Many of these investments are higher risk, so you may be more likely to lose your money. And you are not protected if things go wrong.

To find out more about high-risk investments, see investment warnings.

PROTECT: Know your rights if things go wrong

If you have a problem with a financial service or product from a licensed company or individual, you can complain. They are obligated to see if they can resolve the issue.

For detailed steps, see how to complain.

If you invest in something that is unlicensed and unregulated in Australia, it's harder to get help if things go wrong. If you think you have been scammed, act fast and follow these steps. 

Anyone can be scammed - Australians lose billions each year. But keeping up to date on what to look out for can help reduce your risk. Visit Scamwatch for more information.