In its annual “Targeting Scams” report, the Australian Competition and Consumer Commission (ACCC) said it estimated total scam losses across all categories exceeded $229m (£116.2m, $167m) last year when data from the Australian Cybercrime Online Reporting Network (ACORN) was included.
Growing trend
“By far the most concerning trend in the ACCC’s Scamwatch data related to investment scams, which overtook dating and romance scams as the category with the largest financial losses reported by Australians in the last year,” said Delia Rickard, deputy chair of the ACCC.
Losses to investment scams almost doubled, from A$12.5m to A$24.4m with six people reporting individual losses of A$1m or more. Additionally, ACORN data found further losses to investment scams of almost A$17m, bringing the total reported losses to more than A$41m.
Elderly targeted
“The ACCC is increasingly concerned that scammers will be setting their sights on older Australians to access their superannuation funds via investment scams or to prey on their victims’ emotions for financial gain through romance scams,” Rickard said.
Commenting on the report the Australian Securities and Investments Commission (ASIC) said it received 367 reports about investment scams in 2015 and in general most originated from outside the country.
“The scams reported to ASIC generally come from overseas. In many cases the pitch to consumers is so professional, slick and believable that it is hard to tell these are not genuine financial opportunities,” ASIC’s deputy chairman Peter Kell said.
“People over 55, many of whom are looking for investment returns in a low interest rate environment, are often most at risk,” he added.
“Do not send your money overseas for an investment offer that has come out of the blue. It’s as simple as that,” Kell warned.
Warning list
According to ASIC, investment and financial scams will typically offer:
- High, quick returns and sometimes tax-free benefits;
- Big rewards for what seems a small upfront payment;
- Discounts for early bird investors;
- ‘No risk’ or ‘low risk’ investments, where ‘you can sell anytime’, get a refund for non-performance or have ‘guaranteed’ transactions;
- Inside information or the opportunity to invest before a public float; or
- ‘Magic’ software that claims to predict sporting results or promises to makes you rich through active share trading.
