How to Spot, Avoid Them – and Protect Yourself
Financial scams are on the rise in Australia. The scammers are getting smarter, harder to detect, and the scams more devastating when successful. Many people believe they are too careful to be tricked, yet thousands fall victim every year.
In 2024 alone, Australians reported over 7,000 investment scams to Scamwatch, with reported losses of $192 million. When combined with other agencies and banks, total reported losses hit $2.03 billion. And that’s just the scams that were reported.
The truth? Scammers will likely target most of us at some point – often more than once. The key is knowing how they operate, spotting the red flags, and protecting yourself.
How Scammers Operate
1.Cold Calls and Unsolicited Offers
Most scams begin with a phone call, email, or text promising an “exclusive opportunity.” Scammers create urgency and discourage you from seeking advice.
Best defence: hang up, delete the message, and never click links. Genuine opportunities won’t arrive out of the blue.
2.Too-Good-to-Be-True Promises
Scammers prey on people looking for higher returns. They may encourage you to “test” with a small amount. At first, you’ll see fake growth statements – until they vanish with your money.
Remember: if it sounds too good to be true, it probably is.
3.Fake Credentials and Websites
Scammers often pose as licensed advisers or reputable firms, using professional-looking websites and documents.
Case Study: Rosie was contacted by “Steve,” who claimed to represent a well-known firm. He directed her to a convincing website comparing super funds. Rosie nearly rolled over her super but called her adviser first. Gerry checked the credentials – neither Steve nor the fund existed. Rosie avoided a devastating loss.
Common Types of Financial Scams
- Investment scams – high returns, “guaranteed” profits.
- Superannuation scams – fake advisers promoting rollovers.
- Phishing scams – emails/texts stealing personal or banking details.
- Romance scams – online relationships used to request money.
- Recovery scams – fake promises to recover lost funds for a fee.
Red Flags to Watch For
- Unsolicited contact
- Pressure to act quickly
- Requests for secrecy
- Guaranteed or unusually high returns
- No AFSL (Australian Financial Services Licence)
- Funds or promoters based overseas
If any of these appear – stop and verify before acting.
How to Protect Yourself
- Research Before You Invest – check ASIC’s register, visit gov.au.
- Use Trusted Advisers – qualified financial planners registered with ASIC can confirm if opportunities are legitimate.
- Don’t Share Information – never give out banking, super, or personal details to strangers.
- Secure Your Technology – update software, use strong passwords, avoid public Wi-Fi.
- Educate Yourself – scams evolve constantly; stay updated via Scamwatch.
What To Do If You’re Targeted
- Hang up or delete messages immediately.
- Report to Scamwatch, ASIC, or police.
- Stop payments and contact your bank/super fund.
- Avoid “recovery scams.”
- Get support from IDCARE, a free identity theft support service.
Why Victims Shouldn’t Feel Ashamed
Scammers are professionals who exploit psychology, not just gullibility. Many smart, financially savvy people have been caught. Staying silent only helps scammers – reporting helps protect others.
Superannuation: A Growing Target
Super balances often represent a lifetime of savings. That’s why ASIC has warned about scammers posing as advisers offering to “help” with super rollovers. If contacted, hang up and confirm with your adviser or fund directly.
The Role of Professional Advice
Superannuation and investments are complex. Even genuine opportunities can be difficult to evaluate. A qualified adviser provides an essential safeguard – helping you avoid traps, identify real opportunities, and align them with your goals.
Scams cost Australians billions each year – and the losses are not just financial. Victims often experience stress, embarrassment, and broken trust.
The best defence is awareness:
- Stay alert.
- Refuse unsolicited offers.
- Verify everything before acting.
- Speak with a trusted adviser.
At Continuum Financial Planners, we’re here to help you protect your savings, avoid scams, and build a secure financial future. To make an appointment with one of our qualified, experienced financial advisers –
- phone our office on 07 3421 3456, or
- at your convenience, use the linked Book a Meeting facility.
Important Resources
- Scamwatch – scam alerts and reporting
- Moneysmart – financial warnings and guidance
- ASIC Register – check financial licences
- IDCARE – free scam victim support
(This article was originally posted by us in September 2025.)