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Don't get burned by investment hype

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.

What is investment hype?

Investment hype happens when an opportunity gets a lot of attention and excitement online or in the news. You might see:

All of this can make you feel like you need to invest fast. That pressure is part of the hype – and hype can be hard to spot when you're in it.

How to avoid investment hype

Know what you’re investing in

If you don't have a clear understanding of how the investment makes money, how it works, and of the risks that it could lose money, stop and research more.

Read offer documents, like the prospectus or product disclosure statement (PDS). This shows the key facts, risks and fees. If there are no official documents, that’s a red flag. 

Don’t rely on celebrity posts

Celebrities and online influencers may be paid to promote investments. Their posts aren’t always reliable or unbiased. It could even be a deepfake celebrity endorsement scam. Always do your own checks. 

Be careful of ‘get rich quick’ schemes

Fake experts can often promote investments in front of flashy cars or properties. Sometimes they claim to be able to ‘double your money’ quickly. High returns usually mean there’s a higher risk of losing your money.

Beware of surprise unexpected offers to invest in something that’s being talked about a lot. Scammers use the hype around ‘hot investment topics’ as an opportunity to trick people out of their money.

Check for signs of an investment scam.

What to check before you invest

Use this checklist before you invest in something you saw on social media, in a group chat or in the news. If you answer “no” to any of these, stop and do more research.

Your investing checklist

✅ 1. Do I understand how the investment works?

If you don’t understand it, don’t invest yet.

✅ 2. Have I checked that it’s legitimate?

Only use reputable financial information. If there’s no AFS licence, or the details don’t match, don’t invest.

✅ 3. Is someone being paid to promote this investment?

Always ask: what’s in it for them?

✅ 4. Am I feeling pressure to act fast?

Watch for phrases like:

Real investments don't need urgent pressure. If you feel rushed, pause.

✅ 5. Have I looked for independent information?

If there’s no reputable independent information, that's a warning sign.

✅ 6. Can I afford to lose this money?

Be honest with yourself:

Be extra cautious with money you can't afford to lose.

✅ 7. Am I protecting my personal information?

Never share:

ID documents unless you are sure the provider is legitimate

Hyped investments can sometimes be an investment scam.

✅ 8. Am I investing based on fear of missing out (FOMO)?

Ask yourself:

Slow and steady investing is normal. Most wealth builds over time, not overnight.

Good investments match your goals

Remember: Good investments match your financial goals. They’re not based on FOMO or hype on social media. Taking the time to do some research and to perhaps get professional financial advice before committing your money could save you plenty.