Avoid scams and bad investments by doing some safety checks before you hand over your money. It can save you a lot of worry and money later on.

Check before you invest

• Check the company or product issuer is licensed. You can use ASIC Connect's Professional Registers to check whether a company or investment product issuer is licensed by ASIC. If they're not, don't invest.
• Watch out for get rich quick schemes and scams. Beware of unsolicited investment offers. Ask yourself: where did they get your details and why are they contacting you with an investment opportunity? If you can't answer these questions, don't invest.
• Go through how the investment works. If you don't understand how an investment makes money or the sales person can't explain it clearly, do more research before you invest.
• Know how much risk you're taking on. Be wary of investments that promise high returns. High returns mean higher risk of losing money.
• Read the product disclosure statement (PDS). This tells you an investment's key features, returns, fees, and risks.
• Get professional advice if you're unsure. If you're unsure about an investment, seek financial advice.