Super fund scams: How to protect your retirement savings

Australians now have more than $4.3 trillion sitting in super. For many of us, it's our second biggest asset after the family home.

The problem is that such a large pool of money makes super an attractive target for scammers.

In 2025 alone, Australians lost $22 million to super-related scams, according to the National Anti-Scam Centre. And that's only the reported losses. 

So, it's worth asking: is your super fund doing enough to protect you? Regulators aren't entirely convinced. 

ASIC puts super funds on notice

ASIC’s latest review has warned super trustees to lift their anti-scam protections.

When it compared scams and fraud-related website content across 47 superannuation funds with the big four banks, the gap was clear.

Banks scored positively in more than 80% of the criteria assessed, while most super funds scored between 40% and 60%. 

ASIC's review focused on what members can see and access on their fund’s website. Some of the findings are worth noting: 

• Scam and fraud information was often hard to find.

• Only 19% of super funds clearly defined what constitutes a scam.

• One-third did not provide messaging about common scam warning signs.

• Only about one in five offered a dedicated contact method for reporting scams.

You might be wondering what website wording has to do with real protection. Well, it can make a surprising difference.  

Clear, easy-to-access information is often your first line of defence. If you don’t know what red flags to look for, you’re more likely to be vulnerable. 

ASIC Commissioner, Simone Constant, warned that unless super funds lift their capabilities, they risk becoming a soft target. 

As banks and telcos strengthen their anti-scam systems, criminals don’t give up - they look for other opportunities. Super, with its size and increasing digital access, could be an appealing option.

The rise of super switching schemes

We’ve already seen how damaging scams can be. Around 11,000 Australians invested more than $1.1 billion of their retirement savings into the failed Shield and First Guardian Master Funds. Many were directed there through so-called “super switching” schemes.

It usually starts innocently. 

A social media ad offering a “free super health check”. A comparison. Help finding lost super.

You enter your details.

Then comes the call. Your fund is underperforming. Fees are too high. Returns could be better. There’s urgency. There’s confidence.

Before long, you're being encouraged to switch. 

“These schemes are highly effective,” says Xavier O’Halloran, CEO of Super Consumers Australia. “They prey on people who are just looking to do the right thing and get on top of their super. They often start with a simple health check but can end in people losing their life savings in high fees and dodgy investments.” 

For someone in their 50s or early 60s, there’s very little time to recover from that kind of hit. 

The red flags to watch for

Slow down and think before you act. Here are some of the warning signs according to ASIC: 

• Pressure to act immediately

• Claims your existing fund is underperforming without clear evidence

• Free super “health checks” or prizes via social media

• Offers to find and consolidate lost super for free

• Limited contact with a licensed financial adviser

• Poor or missing product disclosure

• Promises of high or unrealistic returns.

The lead generation problem

Many of these schemes are fuelled by lead generators. They use social media and online ads to collect your contact details and sell them to third parties. 

Mr O’Halloran signed up to one himself to see how it works.

“The advisers built up my trust over several weeks. They seemed knowledgeable and were highly complimentary about the interest I was taking in my super,” he said. “It’s a very convincing sales pitch. If I hadn’t worked in superannuation for the last decade, I wouldn't have known the red flags.”

That’s the point. These schemes don't look like scams. They look like help. 

This is exactly why we need to stay alert.

ASIC turns up the heat on lead generation

ASIC is also doing its part to crack down on this issue. It has launched a new review into advice firms that use lead generation services to drive super switching. It is publishing and updating a list of businesses involved in lead generation, including advice licensees and referral partners that have acquired leads since 1 July 2024. 

Being named on the list doesn't mean a law has been broken. But it does mean ASIC is watching closely. It also means consumers need to be extra careful when dealing with any business that uses lead generation and watch out for any of the red flags listed earlier.

What you can do to protect your super

It might take time for super funds to improve the content on their site and ASIC to complete their reviews, but there are practical steps you can take today to keep your retirement savings safe. 

• Turn on two-factor authentication if your fund offers it 

• Be sceptical of social media ads offering free super comparisons 

• Never share your super details with someone who contacts you unexpectedly 

• Independently verify any financial adviser through ASIC’s Financial Advisers Register 

• Contact your existing fund directly before signing anything or agreeing to switch. 

• If you feel pressured, hang up.

Key takeaways

After three decades of compulsory super, Australians have built substantial retirement savings. But building wealth is only half the job. Protecting it is just as important.

Don't assume your super fund has everything covered.

Don’t assume a confident voice equals credibility.

Your super is your future income, so it deserves the same level of vigilance you give your home and your bank account.