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.
Never respond to unsolicited investment offers or emails and calls that ask for personal or financial details. Just press delete or hang up. Find out how to spot and protect yourself from investment scams.
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 can't answer these questions, don't invest.
- How the investment works - if you don't understand how an investment makes money or the sales person can't explain it clearly, it's time for more research before you put invest.
- How much risk you're taking on. Be wary of investments that promise high returns. High returns means there's high risk of loosing 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.