Protect yourself from scams

Scammers are skilled at tricking you out of your money – here's how to protect yourself.

Investment scams: How to reduce your risk

Scamwatch, run by the National Anti-Scams Centre (NASC) says:

• Stop – Don't give money or personal information to anyone if unsure
• Check – Check who you're dealing with and ask yourself could the message or call be fake?
• Protect – Act quickly if something feels wrong

If you think you've been scammed, act fast and see what to do if you've been scammed.

Here are some ways to help you to stay safe and reduce your risk of being scammed.

Protect your personal information

• Use strong passwords.
• Shred your personal documents.
• Secure your devices with security software and use secure websites.
• Monitor your bank transactions, credit card and online shopping accounts.
• Check your credit report and your superannuation balance regularly.
• Update privacy settings on your social accounts.

For more tips, see identity theft.

Do your own research

• Check before you invest – Always check any investment opportunity to make sure it's real, especially if approached through social media.
• Ask questions – Be wary if someone avoids answering questions about the legitimacy of their offer.
• Get advice – Get independent financial advice before you invest.

Don't rush into a quick decision

• Don't click – on any links in suspicious text messages or emails.
• Be wary of unexpected contact – particularly if you've been contacted through social media. You don't know who you're dealing with.
• Take your time – Don't be pressured to make a quick decision with your money you may regret later.
• Trust your instincts – If an offer sounds too good to be true, it probably is.
• Ask someone – If you're unsure about something, talk to someone you trust about it. They may see red flags that you don't.
• Check payments – Be suspicious if you're asked to pay for something with gift cards or cryptocurrency.

How to spot an investment scam

Here are red flags to help you to identify an investment scam from something legitimate.

Remember, scammers are smart and know how to be convincing. Always be cautious when it comes to trusting someone with your money.

Investment scams: the signs

An investment offer may be a scam if the person:

• 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 (for example, NASDAQ, Bloomberg)
• 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, report them to ASIC. Learn more about how investment scams work.

Crypto scams: the signs

If you're investing in crypto, watch out for these warning signs:

• Unexpected contact – someone you don't know contacts you with investment advice or offers.
• Recommended by someone familiar – a fake celebrity endorsement, online influencer, online acquaintance or romantic partner.
• Pressure to take action – to move your crypto, use crypto to pay for something, or pay to access your crypto.
• Something feels off – strange tokens appear in your wallet or a crypto investment offers 'guaranteed high returns'.

Find out more about how crypto scams work.

Superannuation scams: the signs

Scammers can try to get access to your superannuation. For example, offers to help you get your super early or help you 'control' it by opening a self-managed super fund (SMSF). Learn more about how superannuation scams work.

Additionally, high-pressure sales tactics are putting your super savings at risk. Be on red alert for phone calls, click bait advertising and promises of unrealistic returns to encourage you to put your super into risky investments. Stop, think carefully, and check the claims first.

Read the investor alert and our tips on how to protect your money.

Banking scams: the signs

A bank will contact you if there are suspicious transactions on your account. But they will never ask you for sensitive information such as online banking passwords or codes. Learn more about banking scams.

Signs of identity theft

If your identity has been stolen, you may not realise for some time. Learn more about how to spot the signs of identity theft.

How to check an investment is real

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.

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 that are not to be trusted. 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

 

If you suspect a scam hang up the phone or do not respond to the email. Stop dealing with the person or delete and block them if it's through social media.

For more detailed steps to take, see check before you invest.