Protect your nest egg from investment scams

Recent Scamwatch data shows investment scams continue to account for the largest financial losses reported by Australians.

This was consistent throughout all age ranges. With scammers actively seeking opportunities to deceive Australians, it’s important to Stop, Check and Reject to help safeguard your money.  

How scammers make contact

Scammers often make contact with their victims out of the blue, through a range of contact methods. On social media, they can use paid advertisements to pose as well-known financial advisors and personalities with AI deepfake technology. They might impersonate genuine brokerages and financial institutions, mimicking their websites, messaging, and offers to prove their legitimacy.  

Scammers can use numerous messaging services to promote a “once in a lifetime” opportunity to a mass number of phone numbers. These scams can even start a romantic interest, where scammers have built trust with the victims first and then convinced them to invest their hard-earned money. 

They cast a wide net of advertisements and messages in hopes that even just a few people won’t be able resist their too-good-to-be-true offer.  

The ads and links will click through to false investment platforms. They will often have a snapshot of “invested” funds, how much “revenue” has been generated and even a way to share the “investment opportunity”.  

If you spot any suspicious investment opportunities advertised like this, it’s important to Stop. Take a breath before you click on any ads, links and engage in any messages. Does the offer seem off, suspicious or too good to be true? When you ‘Stop’, you can stop the scam from even starting. 

How the scammers draw people in

Investment scammers prey on Australians by playing on emotions, their fear of missing out, false promises, fake returns, and futile guidance. Scammers and their schemes entice victims that are eager to make big money quick, the adrenaline to pursue more, and the anticipation to see their funds grow. 

Scammers may even provide small returns back to the victims, convincing them to invest even more. However, it will be too good to be true, and by the time a significant amount has been “invested”, it’s gone.  

Scammers will keep in regular contact with the victims, perching at their side, to coach and guide them in the false investments to seem helpful and build trust.