Investment Scams: Warning Signs
One of the best ways to avoid an investment scam is to know what to look out for. Scammers will often call you repeatedly offering investment advice - advice you never asked for. And often it will sound too good to be true. They will tell you that you must act quickly, or you will miss out on this “once in a lifetime” deal. The following are four major warning signs that you're being scammed! If you receive contact promising any of the below, proceed with caution, and contact the ACCC if you are unsure. We will cover these issues in more depth in the coming blogs! Stay tuned!
Investment Seminars
You are invited to attend a free initial seminar, however the fees to attend any following seminars are really high. You should be extra cautious if the organisation hosting the events offers debt to cover event attendance as well as the investments offered at these seminars.
Exclusive Share Price Advice
Another way people are being scammed is through emails offering share price advice for companies. This promise of “special” information often lures people into dodgy investments, and people can lose their life savings. These often come through as emails or cold calls. Make sure you don’t act immediately, and check the source is credible before following up.
“Unlock Your Superannuation Early”
Beware if you are contacted or see an offer promising to give you the ability to unlock your superannuation early. Depending on when you were born, you legally are unable to access your superannuation until you are between 55 and 60. Unless you qualify to access your superannuation under hardship circumstances, if anyone offers to give you early access to your superannuation, they are acting illegally. These offers often involve off the plan property investments and Self Managed Super Funds.
“Be a Millionaire in 3 Years” & “Risk Free Investments”
Beware if you see a seminar that promises you will “get rich quick!” This is usually a warning sign for a dodgy investment. These advertisements usually advertise a seminar claiming a “risk free investment” will guarantee you will be a millionaire in a short period of time.
