Five signs an investment opportunity could be a scam

Out of all scam types, investment scams have the highest reported scam losses for 2026 so far, with older Australians remaining one of the most targeted groups. Since January to September 2026, Scamwatch has reported a total loss of $109,966,745.33. 

Investment scams can drive some of the highest scam losses because people are pressured to invest large sums before they have time to check the opportunity. 

From January to September 2026, Australians reported more than $109 million in investment scam losses across 4,611 reports. Showing how one high-value payment can have a major impact.

Before you hand over your money, stop and check for these five red flags. 

1. Out of the blue contact 

Investment scams can start with out of the blue contact through messaging platforms, social media or email, offering the chance to invest in a 'once-in-a-lifetime opportunity’. 

2. Promoted ads on social media 

Investment scams can show up as paid advertisements on social media. They may use deepfake videos and convincing AI generated ads to make them look genuine. These might look like they are endorsed by celebrities or influencers, or they may even be impersonating genuine companies. It’s important to always verify any investment opportunity by contacting the official company or financial institution through their website or app. 

3. Guaranteed “returns” 

Offers that are promoted as guaranteed returns are likely a scam. Genuine investments will never promise guaranteed or low risk returns. Scammers use this language to entice people and play on the fear of missing out on potential returns. This can trick people to ‘invest’ more in order to gain more. 

4. 1-on-1 coaching and urgency to invest 

Once someone clicks on an ad or shows interest, the scammer might contact them, offering 1 on 1 coaching, guiding them on where and how much to ‘invest’.  

Scammers often create urgency by claiming the opportunity is only available for a limited time. This pressure can make it harder to pause, check the details and make an informed decision.

5. Listed on the ASIC Investor Alert List 

You should check ASIC’s Investor Alert List for businesses that are not allowed to offer investments in Australia. The list flags companies, businesses and websites that may be targeting Australians, but do not hold a current Australian financial services (AFS) licence or Australian credit licence from ASIC. If the supposed investment company is on the list, it’s likely a scam.  

Before investing, always do your own research.  

• Stop interacting. Don't send money, don't hand over your information and don't act on pressure to invest quickly. 

• Check independently. Verify that the investment and the person or group that is offering it are legitimate. Check by using official websites and registers – not links or contact details they’ve given you. Talk to someone you trust, like a family member, before investing. Searching the investment name alongside words such as "scam", "review", "complaint" or "warning" can also help you determine whether it is a legitimate investment. 

• Reject. If something doesn’t feel right stop contact with the person. 

If you think you have been scammed, contact your bank immediately.