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If you’re considering investing in something everyone is talking about, do some checks first.
Some investments may be higher risk than you realise
Investing in something because it’s trending on social media or in the news can be risky. Before you put in money, take time to check the facts.
Good investments should match your financial goals. So, take the time to read our information on investments that might have a higher level of risk than you realise. Understanding the warning signs of risky investments, sales tactics and investment schemes can help you make more informed decisions and avoid costly mistakes.
Visit the Australian Securities and Investments Commission (ASIC) website to keep informed about investment scam alerts, including scams impersonating ASIC. The website also provides tips on how to use ASIC’s resources to help avoid scams.
Investment risks and warning signs
Read our pages below to learn more about:
Sales tactics
Lead generation: If you’ve ever clicked on an advertisement, filled out a form on a comparison website, done an online quiz, or handed over your personal details in some other way, you may have unknowingly put yourself on a lead generation list.
Investment seminars: Some investment seminars can be fantastic – but be wary of invitations to events and seminars offering the financial secrets to make you rich.
Investment hype: Investment hype happens when an opportunity gets a lot of attention and excitement online or in the news. Learn how to spot and avoid hype.
Higher risk investments
Binary options: An ASIC review found that around 80% of retail clients lost money trading binary options.
Land banking: Land banking schemes are often unregulated and there's little protection if something goes wrong.
Prediction markets: Prediction markets allow people to bet on the outcomes of future events. No prediction markets are currently licensed as financial markets in Australia.
Schemes and fraud
Company director fraud: There are some common signs that may show something is not right with the company you've invested in – learn what to look for.
Insider trading: If you’re found guilty of insider trading, you may face up to 15 years in prison. Understand what it is and how to avoid it.
Pump and dump schemes: Pump and dump schemes – under various names and formats – have been around for as long as public investments. But social platforms and other online forums have given these schemes greater reach.
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