Super advice: Hang up on cold callers
The Australian Securities and Investment Commission issues a warning on superannuation scammers.
How to spot a scam
Australians made more than 601,000 scam reports last year and billions were lost to scams, according to the latest Trending Scams report.
Older people suffered the greatest harm at the hands of scammers. Losses for people over the age of 65 increased by 13.3% in 2023 to $120 million. All other age groups reported a decrease in losses.
Finance expert Effie Zahos, who is chief content officer of InvestSmart and writes for National Seniors’ Money Matters newsletter, recently spoke about common scams on the Channel 9 Today show. You can watch that segment here.
National Seniors has partnered with the Australian Federal Police to release a series of videos on cyber safety which you can view here.
ASIC is urging Australians to hang up on cold callers and scroll past social media clickbait offering to help us compare and switch super funds.
The regulator warns on its website that cold callers often use high-pressure sales tactics to convince people to buy a product or sign up to a service.
The scammers’ tactics include making exaggerated claims, using emotional manipulation, and creating a false sense of urgency.
Cold callers can get your contact details in a range of ways, including by:
Running competitions for prizes such as phones or gift cards
Buying your data
Getting you to use their own comparison websites where you input your details.
A typical superannuation cold calling experience includes:
A call from someone you don’t know to see if you “qualify” for a free review of your superannuation
Contact from a cold caller, who convinces you your existing super fund is not performing
A statement of advice (SOA) prepared by a financial advice firm that the cold caller has an existing arrangement with
“Cookie cutter” advice that is expensive, often unnecessary, doesn't consider your individual needs, and may leave you in a worse position.
The cold caller may benefit by getting a cut of the financial advice fees, which are deducted from your superannuation balance.
ASIC warns that you could end up paying for advice that may not even be right for you.
Don’t answer calls from numbers you don’t know
If you get stuck on a cold call, it’s OK to just hang up
If you have given personal information about your superannuation or banking details to a cold caller, contact your existing super fund or bank immediately and ask them not to allow any withdrawals
Stop all contact with the cold caller by blocking their number
Limit the number of calls you receive by joining the Do Not Call register.
If you've seen posts on your social media feed questioning whether your super is performing or encouraging you to compare your super fund, be careful.
Like cold callers who use pushy sales tactics over the phone, some businesses try to grab your attention on social media.
To avoid getting hooked, just scroll past them. To get them off your feed, opt to “see less” of these posts or block them using your app settings.
Quality financial advice is typically provided over weeks, not hours or days.
When it comes to your super, be wary of pushy sales tactics such as cold calling or social media clickbait that rushes your decision-making.
If you have received advice that you believe was not appropriate for you, lodge a complaint with the business that provided the advice. See how to complain on the Federal Government’s Moneysmart website.
If you're thinking about making changes to your super, start by doing your own research, contact your existing super fund, and consider using a licenced financial adviser.
National Seniors Australia members can contact our Financial Information Consultant.
Related reading: Moneysmart
