As the peak professional body representing the SMSF sector throughout Australia, the SMSF Association recognises the increasing risk to SMSF trustees and self-directed investors of cybercrime and scams.
Of the $4 billion expected to be lost to scams in Australia in 2022, scams targeting investments more broadly were the most significant with reported losses amounting to $267.2 million* for the period ending 31 August 2022. As these investment scams continue to grow, they present a risk to our sector as SMSF trustees and self-directed investors can be impacted by these scams.
The SMSF Association has an important role to play in protecting our community. We will endeavour to continue educating SMSF professionals, trustees, and self-directed investors on how best to safeguard/protect retirement savings. There are many different types of scams in circulation and our role is to raise awareness, encourage conversation and promote vigilance to limit those in the SMSF sector from becoming the next scam victim.
INVESTMENT SCAMS ARE THE #1 CAUSE OF FINANCIAL LOSS TO AUSTRALIANS IN 2022
- As at 31 August 2022, Scamwatch has received over 6,200 reports of investment scams with more than $267 million in total losses. This is 70% of total losses reported to Scamwatch for the same period ($381.2 million).
- Losses involving cryptocurrency investments are one of the highest of all types of investment scams. Scamwatch is also reporting that cryptocurrency is the most common payment method for investment scams.
- All age groups are losing money to investment scams, but the over 65s have lost the most with almost $52 million lost. Men have lost the most money.
For more information about investment scams, click here.
Visit SMSF Connect for tailored information that you are able to share with your clients to educate them about cybercrime and scams.
Common types of scams your client should be aware of
PHISHING SCAMS
ROMANCE BAITING SCAMS
REMOTE ACCESS SCAMS
CHINESE AUTHORITY SCAMS
Examples of investment scams
The Vanguard Australia and AMP Capital resources shown, provide common examples of investment scams they have identified, as well as additional information on how to keep your clients and their information safe.
AMP CAPITAL
www.amp.com.au
Vanguard Australia
www.vanguard.com.au
ATO issues warning on investment scams targeting SMSFs
www.smsfadviser.com
Report the scam
If your client has, or is unsure whether they have been approached by a scammer, there are several things to consider:
- Report the scam to Scamwatch Australia immediately – scamwatch.gov.au/report-a-scam
- If your client has lost money to a scam, advise them to contact their financial institution immediately to make a complaint – How to Make a Complaint – Australian Banking Association (ausbanking.org.au). If they are unsatisfied with the response from the bank, a complaint can be made to the Australian Financial Complaints Authority.
- If your client has lost personal information and is concerned their identity may be compromised, your client can contact IDCARE for free support on 1800 595 160.
If you or someone you know is experiencing anxiety, emotional concerns or distress about scams, contact Lifeline on 13 11 14 24 or Beyond Blue on 1300 22 4636.
Additional resources
White label document: Is it a Scam? New data released
Naturally, people aspire to get the most out of their investments, especially if a great opportunity is presented by a ‘trusted’ organisation. However, investment scams occur more often than you
MoneySmart
moneysmart.gov.au
ASIC
asic.gov.au
ACSC
www.cyber.gov.au