Scams and Fraud
At Fiducian, protecting your wealth includes helping you recognise and avoid scams. Fraudsters often target investors, retirees and individuals with savings. Below are some of the most common scams affecting Australians and what you can do to stay safe. If you receive an unexpected request relating to your finances, remember: STOP, CHECK, and PROTECT.
Investment & Wealth Scams
Imposter investment scams occur when criminals pretend to represent legitimate financial institutions, financial advisers or investment platforms. By copying company branding, creating fake websites and using stolen licence numbers, scammers attempt to convince people to transfer funds to accounts they control.
These scams can be difficult to identify because fraudsters often imitate real companies very closely. Emails may appear genuine, and websites may look almost identical to those used by legitimate investment firms.
Regulators such as the Australian Securities and Investments Commission regularly warn that scammers may impersonate licensed companies to gain trust and access to investor funds.
What to watch out for
- Emails or phone calls claiming to be from a financial adviser or investment company asking you to move funds or change payment details
- Investment platforms that look legitimate but have recently created websites
- Requests to transfer money to bank accounts that do not match the company name
- Messages containing links that lead to slightly altered website addresses. DO NOT click on the link, you can hover over the link, and the address will appear
- Unsolicited contact about investments you did not enquire about
How to stay safe
- Always contact your financial institution using official phone numbers listed on their website
- Independently verify any request to change investment payment details
- Check whether a financial adviser is listed on the ASIC Financial Adviser Register
- Take time to confirm instructions before transferring funds
- If something feels unusual, speak with your financial adviser or financial institution first
Warning Signs of a Fake Investment Opportunity
Investment scams often rely on attractive promises and urgency to persuade people to act quickly. Fraudulent opportunities may be promoted through social media, messaging apps, email or unsolicited phone calls.
While legitimate investments involve risk and require proper documentation, scams typically promise high returns with minimal explanation.
What to watch out for
- Guaranteed returns or unusually high profits
- Pressure to act immediately before an opportunity closes
- Investment offers delivered through cold calls, social media messages or online chat groups
- Requests to transfer funds to cryptocurrency wallets or overseas accounts
- Limited documentation or unwillingness to answer detailed questions
How to stay safe
- Research the company and investment thoroughly before committing
- Be cautious of offers that seem too good to be true
- Take time to seek independent advice from an authorised financial adviser
- Verify the organisation through the Australian Securities and Investments Commission
- Never transfer funds until you are confident the opportunity is legitimate
Crypto Investment Scams Explained
Cryptocurrency investment scams have increased in recent years as digital assets become more widely known. Criminals create fake trading platforms or investment apps designed to simulate real market activity.
Victims may see what appear to be profitable trades and increasing account balances. These gains are usually fabricated to encourage additional deposits. When investors attempt to withdraw funds, they may be told they must deposit more money to unlock their account or pay additional fees.
What to watch out for
- Online trading platforms promising fast or guaranteed cryptocurrency profits
- Social media posts promoting exclusive crypto trading groups
- Screenshots showing large trading profits
- Requests to deposit additional funds to unlock withdrawals
- Platforms that only accept cryptocurrency deposits
How to stay safe
- Research cryptocurrency platforms carefully before investing
- Be cautious of unsolicited investment recommendations
- Avoid transferring funds to platforms that cannot be independently verified
- Speak with an authorised adviser before investing in unfamiliar assets
- Report suspicious activity through Scamwatch
Superannuation & Retirement Scams
Common signs of a superannuation scam
Superannuation scams target retirement savings by attempting to gain access to personal details or super accounts. These scams commonly involve phishing emails, text messages or phone calls pretending to come from a super fund or government agency.
Once scammers obtain login details or personal information, they may attempt to access the account or redirect funds.
What to watch out for
- Emails or SMS messages claiming there is a problem with your super account
- Links asking you to log in and confirm your personal information
- Unexpected phone calls requesting account details or identity verification
- Messages that create urgency about account security
- Requests for passwords or verification codes
How to stay safe
- Access your super account only through official websites or apps
- Never share your login details with anyone
- Ignore links sent in unexpected messages
- Enable multi-factor authentication where available
Contact your super fund directly if you are unsure about a message
SMSF Setup Scams: What Investors Should Know
Description
Self-managed super funds (SMSFs) can offer investment flexibility, but they also come with significant responsibilities. Some scammers take advantage of this by encouraging people to transfer their super into fraudulent SMSF structures.
Victims may be told they can access better investment opportunities or gain early access to their super. Once funds are transferred, scammers may redirect the money into fraudulent schemes.
What to watch out for
- Unsolicited offers to set up an SMSF quickly
- Claims that an SMSF will allow you to access your super for property or cryptocurrency investments
- Requests to transfer your super balance into a newly created fund
- Pressure to sign documents without understanding the structure
- Complex arrangements that are not clearly explained
How to stay safe
- Seek advice from an authorised financial adviser before establishing an SMSF
- Understand the responsibilities of being an SMSF trustee
- Verify the credentials of anyone offering SMSF services
- Avoid making rushed decisions about transferring super balances
Confirm information through the Australian Securities and Investments Commission
Offering you early access to your super
Description
In Australia, superannuation is generally preserved until retirement or until specific legal conditions are met. Some scammers falsely claim they can help individuals access their super early through special loopholes or arrangements.
These schemes are often illegal and may result in significant tax penalties as well as financial loss.
What to watch out for
- Advertisements offering quick access to your super
- Claims that there are special loopholes to withdraw funds early
- Requests to transfer your super into a new investment structure
- High fees charged for arranging early access
- Pressure to act quickly
How to stay safe
- Only access your super early through legitimate conditions of release
- Speak with your super fund before making changes
- Seek advice from an authorised financial adviser
- Be cautious of unsolicited offers involving retirement savings
- Report suspicious offers to Scamwatch
Romance & Relationship Scams
These scams involve building trust over weeks or months before requesting money or investment assistance.
How Romance Scams Target Investors and Retirees
Description
Romance scams occur when criminals create fake online identities and build relationships with victims over time. These scams often develop gradually, with scammers communicating regularly to build trust and emotional connection.
Once trust is established, the scammer may introduce financial requests such as emergency assistance, travel costs or investment opportunities.
What to watch out for
- Online contacts who quickly express strong emotional feelings
- Stories involving working overseas or travelling
- Refusal to participate in video calls or meet in person
- Requests for financial help due to unexpected emergencies
- Requests to transfer money or invest on their behalf
How to stay safe
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Avoid sending money to people you have only met online
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Be cautious about sharing personal or financial information
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Discuss concerns with trusted friends, family or a financial adviser
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Take time to verify someone’s identity
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Report any suspicious activity to Scamwatch
Dating Apps and Financial Scams – What to Watch For
Description
While many people successfully meet partners through dating apps, scammers also use these platforms to build relationships with the goal of financial exploitation.
After gaining trust, scammers may request money or introduce investment opportunities.
What to watch out for
- Contacts who quickly ask to move conversations off the dating platform
- Stories about financial hardship or emergencies
- Requests for money or help with investments
- Individuals who refuse video calls or meeting in person
- Requests for personal or financial information
How to stay safe
- Keep conversations within the dating platform where possible
- Be cautious about sharing personal details online
- Avoid sending money to someone you have not met
- Verify identities before building trust
- Report suspicious accounts to the platform
The “Investment Tip” Romance Scam
Description
In some romance scams, criminals introduce an investment opportunity after building a personal relationship. Victims may be encouraged to invest in cryptocurrency or foreign trading platforms recommended by the scammer.
These platforms are typically fraudulent.
What to watch out for
- Online contacts recommending specific trading platforms
- Claims that they have achieved large profits from investing
- Screenshots showing significant investment returns
- Requests to deposit funds through cryptocurrency
- Pressure to increase investment amounts
How to stay safe
- Be cautious of investment advice from online contacts
- Research any investment platform independently
- Seek advice from an authorised financial adviser
- Avoid transferring funds based on personal relationships
- Report suspicious activity through Scamwatch
Impersonation & Phishing Scams
These scams attempt to steal personal information or gain access to financial accounts.
How Phishing Emails and SMS Messages Work
Description
Phishing scams are designed to trick individuals into revealing sensitive information such as passwords, account numbers or verification codes. These scams commonly appear as emails or SMS messages that look like they come from trusted organisations including banks, superannuation funds or government services.
A phishing message usually contains a link to a fake website designed to look almost identical to the legitimate organisation’s login page. When someone enters their username and password, the scammer captures these details and may attempt to access the real account.
Phishing attacks are often sent to thousands of people at once and rely on urgency or fear to encourage quick responses. Regulators such as the Australian Competition and Consumer Commission and the Australian Securities and Investments Commission regularly warn consumers about phishing scams targeting financial accounts.
What to watch out for
- Messages asking you to confirm or update account details
- Links directing you to login pages or verification forms
- Unexpected alerts claiming there is a problem with your account
- Emails that contain spelling errors or unusual formatting
- Requests for passwords, PINs or security verification codes
How to stay safe
- Do not click on links in unexpected emails or text messages
- Access your accounts by typing the official website address directly into your browser
- Never share passwords, security codes or login details
- Enable multi-factor authentication (MFA) where available
Contact the organisation directly if you are unsure whether a message is genuine
Remote Access Scams and Fake Technical Support
Description
Remote access scams occur when criminals convince individuals to install software that allows the scammer to control their computer remotely. Fraudsters may claim to be from a technology company, internet provider or security service and warn that there is a problem with the computer.
Once remote access software is installed, scammers may be able to view personal information, access online banking or investment accounts, and even transfer funds without the user realising.
Remote desktop tools such as AnyDesk or TeamViewer are legitimate programs often used by IT professionals. However, scammers may misuse these tools to gain unauthorised access to computers and financial information.
What to watch out for
- Unexpected phone calls claiming your computer has a virus or security issue
- Requests to download or install remote access software
- Instructions to log into your bank or investment accounts while connected
- Requests to transfer money to fix a supposed problem
- Callers who create urgency or pressure you to act quickly
How to stay safe
- Never install software at the request of an unsolicited caller
- Hang up if someone claims to represent technical support unexpectedly
- Only allow remote access from trusted IT providers you have contacted yourself
- Keep your computer operating system and security software updated
- If you suspect your device has been compromised, disconnect from the internet and seek professional assistance
Government Impersonation Scams (ATO or MyGov)
Description
Government impersonation scams occur when criminals pretend to represent official agencies to obtain personal information or payments. These scams may involve phone calls, emails or text messages claiming to be from government organisations.
Common examples include scammers pretending to represent the tax office or government services, claiming there is an outstanding debt, refund or investigation. Victims may be threatened with legal action, fines or arrest if payment is not made immediately.
Government agencies such as the Australian Taxation Office and services connected to myGov warn that scammers often attempt to imitate official communications.
What to watch out for
- Messages claiming you owe money and must pay immediately
- Threats of legal action, fines or arrest
- Requests to make payments using gift cards, cryptocurrency or unusual payment methods
- Links directing you to fake government login pages
- Unexpected calls requesting personal or financial details
How to stay safe
- Government agencies generally do not demand immediate payment over the phone
- Access government services only through official websites
- Do not provide personal information in response to unsolicited messages
- Contact the agency directly if you are unsure whether a message is legitimate
- Report suspected scams to Scamwatch
Lottery, Inheritance & Windfall Scams
These scams promise unexpected financial rewards to encourage victims to share personal information or pay upfront fees.
International Lottery Scams Explained
Description
International lottery scams typically begin with an email, letter or message claiming that you have won a large prize in a lottery or competition. These messages may appear to come from legitimate organisations and often include official-looking documents.
However, the recipient usually did not enter the competition. The scammer will claim that certain fees, taxes or processing charges must be paid before the prize money can be released. Once payment is made, the promised winnings never arrive, and the scammer may continue requesting additional payments.
These scams rely on excitement and the possibility of a large financial reward to encourage quick decisions.
What to watch out for
- Messages claiming you have won a lottery you did not enter
- Requests to pay processing fees, taxes or administration costs
- Emails asking for banking or identity details
- Requests to keep the win confidential
- Instructions to send payments to overseas accounts
How to stay safe
- Remember that you cannot win a legitimate lottery you did not enter
- Never pay upfront fees to receive prize money
- Avoid sharing personal or financial information
- Delete suspicious messages and do not respond
- Report suspicious offers through Scamwatch
Inheritance Scams and Fake Estate Claims
Description
Inheritance scams involve criminals claiming that a distant relative or unknown individual has left you a large inheritance. The message may come from someone claiming to be a lawyer, estate administrator or bank representative.
The scammer will usually explain that you are entitled to a share of the estate but must first pay legal fees, administrative costs or taxes before the funds can be released.
These scams often include official-looking documents or complex legal explanations designed to make the situation appear legitimate.
What to watch out for
- Emails from unknown lawyers or estate administrators
- Claims involving large inheritances from distant relatives
- Requests to pay legal or processing fees
- Pressure to respond quickly or keep the matter confidential
- Requests for personal identification documents
How to stay safe
- Be cautious of unexpected inheritance notifications
- Verify any claims through independent legal channels
- Do not send money or personal information to unknown contacts
- Discuss the situation with a trusted financial adviser before responding
- Report suspicious communications to Scamwatch
Why “Too Good to Be True” Offers Are Often Scams
Description
Many scams rely on psychological tactics to persuade individuals to act quickly without carefully evaluating the situation. Promises of large rewards, exclusive opportunities or unexpected windfalls can create excitement and reduce caution.
Scammers often combine these offers with urgency, secrecy or emotional pressure to prevent victims from seeking advice or verifying the information.
Understanding these tactics can help individuals recognise when an offer may not be legitimate.
What to watch out for
- Offers promising large financial rewards with little effort
- Pressure to act immediately or keep the opportunity confidential
- Requests for upfront payments or processing fees
- Limited information about the organisation making the offer
- Claims that the opportunity is exclusive or time-limited
How to stay safe
- Take time to carefully evaluate any financial offer
- Seek independent advice before making financial decisions
- Research the organisation and opportunity thoroughly
- Be cautious of unsolicited offers involving money
- Trust your instincts if something does not seem right