Investment scams

An investment scam is when someone contacts you out of nowhere, either via phone or email, offering the chance to invest in a 'once-in-a-lifetime opportunity'.

Whether it’s a cold call from a scammer pretending to be a stock broker or portfolio manager, or being approached via social media or email with a money-making opportunity that requires you act quickly, you’re promised the investment will provide excellent returns and involve very little risk on your behalf. It will sound like a win-win for you or your business.

The scammer often sounds legitimate and knowledgeable and will throw facts, figures and projections at you to make their investment seem too good to miss out on.

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