The post 5 tips to protect yourself from being scammed appeared first on Financial Planning QLD.
]]>With a high likelihood that we will all be targeted by scammers at some stage, perhaps repeatedly, how can we identify scams and protect ourselves from losses?
Most investment scams start with a phone call. So how to protect yourself from being scammed here? No matter how compelling the story told by the caller, if you haven’t done anything to invite contact from an investment’s promoter, it is likely to be a scam. The simple solution? Hang up early in the call. If the approach is made by e-mail, social media or text message don’t click on any links and delete the message.
In times of low interest rates it’s hard to find a good return on lower risk investments such as term deposits and bonds. The promise of high returns, perhaps with a built in guarantee may look compelling. But the age old saying holds: if it seems too good to be true, it probably is.
Some investors are willing to put such promises to the test by making a small investment. When professional looking statements show that the promised performance is being delivered, the investor makes a much larger deposit. Not long after that the promoter seemingly disappears.
Are they based overseas? This is a big red flag. If Australian, are they (and their prospectus) registered with ASIC? Do they have an Australian Financial Services Licence? Do they appear on the list of companies you should not deal with (available at moneysmart.gov.au)? Is their street address genuine and do they have a physical office? How long have they been in business?
Even with a legitimate investment an independent assessment is a good idea. With a questionable investment it might just save you from being scammed.
Scams are evolving all the time. To protect yourself from being scammed, we need to educate ourselves. Government websites moneysmart.gov.au and scamwatch.gov.au provide information on a wide range of scams and are updated as new scams appear. They also provide advice on how you can protect yourself.
You can make a report via the Scamwatch website (operated by ACCC), to ASIC and to your local police. Stop sending money to the scammer, and beware of the double sting where scammers offer to help you recover your losses, for a fee, of course.
While ASIC and ACCC do not provide direct assistance to scam victims, the information can help with investigation and law enforcement, and provide intelligence on scam activity. Police may also be limited in their ability to identify and prosecute scammers, particularly if they are located overseas. The sad fact is that most victims of scams never see their money again.
Practical help is available from IDCARE. This is a free support service that can assist businesses and individuals with a range of cyber issues including identity theft, romance scams and investment scams.
Always stay vigilant and learn to be proactive. Give this article a quick read on how you can beat the scammers at their own game. If you want to learn more, give me a call for an obligation free chat.
Sources:
Money Smart https://moneysmart.gov.au
Scam Watch https://www.scamwatch.gov.au
ID Care https://www.idcare.org/
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
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]]>In 2021, 3.2 million Australians were using match-making apps; developers of these platforms raked in around $56 million. Little wonder crooks and scammers want a piece of the action – as Shayne found out.
At 24, tradie Shayne met the scammers’ demographic. After spotting a social media advertisement for free membership to a dating community, he signed up.
Shayne was introduced to a handful of perfect matches and encouraged to get to know them by sharing everyday details like his job, interests, etc.
Scammers use these seemingly harmless details to deceive and exploit individuals seeking love and companionship. A common strategy is to create fake online profiles to gain their victims’ trust.
Using photos stolen from websites and social media accounts, along with fabricated stories, families and careers, scammers establish themselves with seemingly genuine online profiles.
Having established a connection, scammers engage in ‘catfishing’, a process where they form emotional relationships with those most vulnerable – the trusting, the lonely.
In 2021, Australians were scammed out of over $46 million!
After accepting a social media friend request from one of his matches, Shayne unwittingly exposed his friends and family to the fraudster.
Sadly, by the time he realised he’d been scammed, it was too late.
Using photo-editing software, the crooks superimposed Shayne’s face over a series of fake images to create convincing, and sexually graphic photos. Shayne then received demands for money to prevent the photos being shared with his social media contacts; friends, colleagues, even his grandma!
Panicked, Shayne handed over his entire savings – his home deposit. Even so, he failed to prevent the humiliating images being uploaded.
This type of scam is called ‘sextortion’ and it’s surprisingly common, though often unreported due to its embarrassing nature.
Victims are left feeling betrayed, humiliated and reluctant to form relationships. More vulnerable people suffer sever emotional distress often resulting in depression and self-destructive thoughts.
Beyond the emotional impacts, other risks include:
Financial losses. Scammers concoct elaborate stories involving emergencies or financial hardship to deceive victims into sending money. Victims are left with depleted bank accounts and sometimes debt as they borrow to satisfy the scammers’ demands.
Identity theft. Fraudsters gather personal information including bank account details and Tax File Numbers. Using these, they obtain passports, drivers’ licenses, etc, enabling them to borrow in their victims’ names.
Personal safety. Some con-artists manipulate victims to meet in person putting them at risk of physical harm.
The online dating scam trades on our inherent need to form relationships with one another, but by following a few precautionary steps, you can reduce the risk of being caught out.
Online dating offers opportunities for genuine connections, although inadvertent contact with a dodgy-dealer can result in devastating emotional, financial and physical safety consequences.
If you suspect you’ve encountered a scammer, consider filing a report with the Government’s Scamwatch page www.scamwatch.gov.au
For emotional support, organisations like Beyond Blue are trained and discreet. Go to www.beyondblue.org.au
By understanding scams and taking preventative measures, you can navigate the online dating world, and perhaps meet that special someone.
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
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]]>Financial stings have become a serious threat to Australian consumers and businesses. According to the ACCC’s Scamwatch website, there were 161,582 reports of scam in 2017, for a total loss of more than $90 million!
Identity theft scams involve someone stealing another person’s identity and can do anything with it from cleaning out bank accounts to taking out fake mortgages. But scams can come in many guises, including, but not limited to:
Let’s look at the most damaging of all – investment scams.
When targeting Australia, scammers know and use all sorts of tricks to entice the vulnerable but there are steps you can take to protect yourself.
Scammers usually make contact “out of the blue” with a blanket offer and use tactics to pressure you into the deal. These “professionals” try to make their offer look as genuine as possible and most will have any or all of the following features:
Investment scams can appear very professional on the surface. By the time the victim realises the offer was too good to be true, the scammer has disappeared with their money.
If you receive a call or email always check the validity of the offer and provider, by asking:
If the caller can’t or won’t provide these details, it will be a scam. If they do answer, take down the details and check the Australian Securities and Investment Commission list on its MoneySmart website (www.moneysmart.gov.au) or the Australian Competition and Consumer Commission (ACCC) ‘Scamwatch’ site (www.scamwatch.gov.au).
Scammers are targeting Australia and some scams aren’t as obvious, so always protect your personal information. Never give out bank details or transfer money to anyone you don’t know or trust.
Always check your statements and report any suspicious transactions to your financial institutions. Make sure your computer and mobile devices are protected with strong passwords, anti-virus software and firewalls.
And beat the scammers at their own game – if you are contacted by one of these fraudsters, immediately report it to the ACCC via www.scamwatch.gov.au or phone 1300 795 995. Hopefully the scammer will end up the victim instead.
It is always good to keep informed about what scammers are trying to do and if know of someone that needs to hear this, please share it with them. Remember to always seek financial advice before making any big money decisions. If you would like to discuss your financial situation and see how I can help you, call for a free appointment with me.
Sources:
SCAMwatch website www.scamwatch.gov.au
MoneySmart website www.moneysmart.gov.au Report a scam
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
The post Beat the scammers at their own game appeared first on Financial Planning QLD.
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]]>This isn’t necessarily because your demographic is particularly gullible. Rather, it’s because you’re more likely to control higher levels of wealth, perhaps as the trustee of a self-managed super fund (SMSF); you’re accustomed to making financial decisions; and you’re actively looking for attractive investment opportunities. What scammer wouldn’t want to target you?
And even with so much growing public awareness, investment scams increased by 19% in 2018 over the previous year! More than $38 million dollars were lost via clever investment scams, with males accounting for $29.1 million of that staggering figure.
Scams take many forms but when it comes to superannuation, two stand out:
Either way, the result can be a major financial loss and dreams destroyed.
One clear warning of a scam is an unsolicited approach. Someone contacts you, usually by phone or email, offering an investment that is ‘both safe and delivering high returns’. This person will often know a lot about you, reciting accurate personal details they claim you provided in a questionnaire you completed earlier. Their story is supported by an apparently authentic website and, enticed by the attractive returns and smooth sales talk, you make an initial investment. At the beginning you receive statements showing your investment is growing steadily prompting you to add further funds. Then things go silent. Their phone number is disconnected, emails bounce and the website disappears, along with any hope of recovering your funds. Your stomach lurches. A cold sweat saturates you. You’ve been scammed.
Wonderful as modern technology is, it makes it easier for fraudsters to appear legitimate and transfer money in an instant. They close down one operation and set up another with ease. It doesn’t help that we give away much of our personal information, and what isn’t available for free can often be purchased by criminals.
The other major financial scam that lures many who need money quickly is the promise of early access to superannuation. This is how it works.
Bob’s superannuation is just sitting there, the solution to his financial problems if only he could access it.
He searches the internet for options and an advertisement promising early access to super pops up. This puts Bob in touch with a ‘specialist’ who helps him set up a SMSF, telling him that as the fund trustee he will be able to get hold of his super money. Bob signs the paperwork to set up the fund and rollover his super, but the money doesn’t turn up where it should. Eventually Bob discovers that his retirement savings were transferred to a bank account controlled by the scammer then moved overseas.
Not only has he lost the lot, Bob now faces a big tax bill for accessing his super prematurely. The scammers didn’t tell him that early access to super is only available:
A few simple precautions can help protect your super (and other savings) from any financial scam.
For more information read our 5 tips to protect yourself from being scammed.
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
The post If you think you’d never fall for a financial scam, read this… appeared first on Financial Planning QLD.
]]>The post How to protect yourself from being scammed appeared first on Financial Planning QLD.
]]>We are all interested in making a better return on our investments but who can we really trust?
The Australian Competition & Consumer Commission (ACCC), the government body with a charter to protect consumers, has a most helpful website at www.scamwatch.gov.au with tips to assist Australian small businesses and consumers, and lists of scams they have uncovered.
The federal government has an online service called “Stay Smart Online” at www.staysmartonline.gov.au. You can sign up for the email alerts that provide details of the latest scams doing the rounds and what to do if you are targeted, either online, by phone or via the post.
The Australian Securities & Investment Commission (ASIC) warns that financial scams tend to look realistic and are presented professionally. Scammers often go to a lot of trouble to:
Some of the clues to look out for include offers with a much higher return than genuine investments. Some offer 20% a year, others may go to 200% or even more. Many scams state that financial success is easy and risk isn’t a problem.
Then again it could be a “secret offer”, “inside information” or “new techniques”. There is always some feature to make you feel like you will have an edge over other people. Scams get dressed up as an opportunity and scammers will create a sense of urgency with “don’t miss out”, “act quickly” or, “hurry, before it’s too late”.
Start your research by first checking if the person or company making the offer is domiciled in Australia and operating under a licence issued by ASIC.
These days, websites are like phone numbers – anyone can have one. Don’t get caught by the unscrupulous. Check with ASIC or myself, a licensed financial adviser before doing anything – or better still, just ignore the “magic offer”. Give me a call if would like to chat about this digital epidemic.
For more information:
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
The post How to protect yourself from being scammed appeared first on Financial Planning QLD.
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