Protect your retirement savings from investment scams

Investment scams continue to grow and become increasingly sophisticated, with scammers targeting vulnerable groups, especially older Australians. The 2023 ACCC Targeting Scams report highlights that individuals over the age of 65 were disproportionately affected, with reported losses amounting to $120 million.

These scams come in various forms, but they all share a common goal - to steal your money by convincing you to invest in fake opportunities. They often present the prospect of high-profit returns, with the scammers disguising themselves as well-trained experts on the market. According to the ACCC, investment scams were the leading cause of financial loss in 2023, accounting for $1.3 billion of the total $2.74 billion reported losses.

1. Impersonation: Scammers often impersonate legitimate financial institutions or well-known investment firms. They may contact you via phone, email, or social media, offering exclusive investment opportunities. These scammers use professional-looking websites and documents to appear credible. 
2. High returns, low risk: One of the biggest red flags is the promise of high returns with minimal risk. Genuine investments typically involve some level of risk, and any offer that guarantees high profits without risk should be approached with skepticism. 
3. Pressure tactics: Scammers often create a sense of urgency, pressuring you to act quickly to secure a "limited-time offer". This tactic aims to prevent you from thoroughly researching the investment or seeking advice from trusted sources. 
4. Phishing and malware: Scammers may send emails or messages containing links to fake websites. Clicking on these links can lead to phishing attacks, where your personal information is stolen, or malware infections that compromise your devices.

1. Verify the legitimacy of the offer: Before investing, always verify the legitimacy of the offer. Use the official website or contact details of the financial institution to confirm the authenticity. The Australian Securities and Investments Commission (ASIC) and Scamwatch are excellent resources for checking the legitimacy of investment opportunities. 
2. Consult a financial advisor: Seek advice from a licensed financial advisor, especially if you are unfamiliar with the investment. Advisors can help assess the risks and benefits, ensuring that the investment aligns with your financial goals. 
3. Be sceptical of unsolicited offers: Be cautious of unsolicited investment offers, especially those that promise guaranteed returns. Reputable financial institutions do not typically cold-call potential investors with unsolicited offers. 
4. Secure your personal information: Protect your personal and financial information. Never share sensitive details like bank account numbers or passwords over the phone or online. 

Investment scams are not the only risk you should consider while investing, it’s important that you understand the risks associated with any investment. For independent information about investment choices, visit the MoneySmart website, which has useful information on products such as term deposits, as well as tips on how to choose a financial adviser.

Remember, investment scams pose a significant risk, particularly to older Australians. By staying informed and vigilant, you can protect your retirement savings from these sophisticated scams. If an investment opportunity seems too good to be true, it probably is. Always consult with trusted financial advisors and use reliable sources to verify the legitimacy of any investment offer. Stay safe and protect your financial future. 

Get in touch 

If you or someone you know has been targeted or lost money as a result of being scammed, contact your financial institution immediately. 

Report it 

Report the scam via the Australian Cyber Security Centre or by sending an email to hoax@cba.com.au if it is CBA branded. Reports may be referred to the police for investigation. 

Take control and stay protected 

Change your passwords and PINs straight away if you suspect your security has been compromised. Change these regularly as a preventative measure. 

Seek support 

Contact IDCARE on 1800 595 160. IDCARE is a free, government-funded service that provides support to victims of identity crime.