Everything you need to know about investment scams

Scam activity is on the rise in many industries, so it’s becoming increasingly important that you and your loved ones know what to look out for. We have identified an active scam risk relating to fraudulent investment products that scammers are offering to unknowing victims – here’s everything you need to know.

What is an investment scam?

Investment scams involve fake investment products, like term deposits, investment funds, and cryptocurrency. Scammers contact victims via phone, email or text message trying to convince them to invest in these fraudulent products. They may also advertise them via social media. Funds transferred for these investments then end up in the accounts of the scammers, which can be difficult to recover.

The investment products that scammers may attempt to sell you include:

• cryptocurrencies (e.g. Bitcoin)
• business ventures
• superannuation schemes
• managed funds
• shares or property
• term deposits
• investor bonds

Scammers may use professional-looking materials to try to convince you of the investment’s legitimacy. These can be things like brochures, professional emails, celebrity endorsements and even dummy investment portfolio websites with log ins, graphs and trackers, where you can see your investment “growing”.

What are the red flags for investment scams?

Being able to spot red flags is critical in avoiding investment scams. Here are the top things to watch out for:

• Anything that sounds too good to be true. Investment scammers try to get victims to act quickly by providing attractive returns and limited time offers.
• Social media advertisements with celebrity or influencer endorsements. Scammers often use fake endorsements to make their ‘opportunity’ sound legitimate. Be wary of any use of well known personalities in advertising. Many of them are fake or AI-generated.
• Any unsolicited contact from an investment or advisory firm. While some investment scams advertise to you, others will reach out to you directly. If you receive any contact from an investment firm or advisor, even if they claim to be from a legitimate firm, do not make any investments that you haven’t independently verified yourself.
• Anyone claiming to help you access your superannuation early. Generally speaking, you can’t access your superannuation savings until you reach retirement age. Scammers may tell you they can access your funds early if you make a ‘tax payment’ or ‘release payment’. This is an immediate warning sign of a scam.
• Any requests for payment, at any time, from anyone. With scams so prevalent, it’s helpful to approach any and all requests for payment with caution – especially if it’s to someone you don’t know.

For more practical tips on protecting yourself from scams, read our latest guide to staying safe online. Always remember to Stop, Think and Protect.

• Stop – before you make a quick decision, stop. Could this be a scam? Scammers benefit from rushed decision making.
• Think – what are the red flags here? Why have I been contacted? How can I verify this is legitimate?
• Protect – act quickly if something feels wrong. Contact your bank for support if you’ve transferred funds to a scammer. Then, report the scam to Scamwatch.

What to do if you think you’ve been scammed

If you notice unusual activity or if a scammer gets your money or information, visit www.bendigobank.com.au/security to report it and get support. If you think you have transferred money to a scammer, call us immediately on 1300 236 344.

If you have provided personal information, particularly photo identity documents like passports and driver’s licences, contact IDCARE to take steps to protect your identity.

For the latest scam alerts and information to keep yourself and your family safe online, visit www.bendigobank.com.au/security and learn more about how to protect yourself.