Investment Scams

Investment scams promise high returns with little or no risk. Scammers often impersonate legitimate financial firms, use slick marketing, and even create fake websites or documents to lure you in. Australians lose more money to investment scams than any other type of scam.

A scammer may contact you through social media, a dating app, email or phone. They may show you a polished website or app, fake account balances and early ‘returns’ to build your confidence before asking you to invest more.

Common Tactics Used by Scammers

• Fake endorsements: Ads or articles claiming celebrities or financial experts support the scheme.
• Pressure to act fast: “Limited time offer” or “exclusive opportunity” tactics.
• Fake data: You may see fake dashboards showing your investment “growing.”
• Small wins: Scammers may allow small withdrawals to build trust before blocking access to your funds.
• Unlicensed advisors: They may claim they don’t need a financial services license.

You see an online ad for a cryptocurrency investment that appears to be backed by a well-known person. After creating an account, someone calls to guide you through transferring money. The balance shown online grows, but you cannot withdraw it.

Sam receives a message about an exclusive investment with strong returns. The adviser is friendly and helpful, but keeps urging Sam to act before the opportunity closes. Sam pauses and checks the business independently before sending any money.

• Guaranteed or unusually high returns
• Pressure to invest quickly or keep the opportunity secret
• Requests to pay using cryptocurrency or transfer money to an unfamiliar account
• A platform that shows profits but makes withdrawals difficult

• Many rural investors are looking for ways to diversify income.
• Scammers exploit trust and community networks.
• Limited access to financial advice in remote areas can make vetting offers harder.

• Verify the advisor: Check if they hold an Australian Financial Services (AFS) license or are registered in New Zealand.
• Do your research: Look up the company on ASIC’s Moneysmart investor alert list or the IOSCO portal.
• Check the website: Use tools like ICANN’s domain lookup to see when the site was created — new domains for “old” companies are a red flag.
• Get independent advice: Speak to a licensed financial advisor before investing.
• Don’t promote it: If you're asked to recruit others for commission, it’s likely a scam.

If you receive an investment offer and you're unsure, contact your local branch or financial advisor. We’ll help you verify its legitimacy and protect your financial future.

Visit Scamwatch.gov.au or call IDCARE at 1800 595 160.