Investment scams

An investment scam is when someone contacts you out of nowhere, either via phone, email, or social media, offering the chance to invest in a 'once-in-a-lifetime opportunity', including crypto. They may pretend to be anyone, from a stockbroker or a portfolio manager to an investment professional. They offer quick returns with little to no risk involved. Scammers often make their schemes seem convincing by using professional-looking websites, documents, or apps. They may even create deepfake videos or images to impersonate celebrities and build credibility. They may even pay out the first few investments to convince victims to invest even more.

To learn more about crypto scams, visit our crypto scams page.

Stop

• Be suspicious of ‘investment opportunities’ offering high returns with little to no risk.
• Stay alert to online interactions, especially through social media ads endorsed by public figures or popular TV programs.
• Look out for sponsored ads or AI-generated content impersonating celebrities on social media. These deepfakes can look and sound real, making scams seem legitimate.

Check

• Sense check investment opportunities with friends and family before committing to anything. They may help identify warning signs or red flags that you might have missed. 
• Research and check reviews by searching the investment name with the word ‘scam.’ 
• Consult ASIC's list of companies you should not deal with by using the ASIC search portal. If the company that called you is on the list, do not communicate with them.
• Understand how to check if a company or a person is licensed on MoneySmart. 

Reject

• Do not provide your details to unsolicited call or emails about investments, especially from unknown sources. Hang up or delete the email.
  
• If you are being pressured to make a decision about your money or investments, hang up, block, report and do not respond to any subsequent attempts to contact you.
• Understand that if you participate in such investments, chances of recovering your funds, let alone seeing your returns are extremely slim. 

Investment scams are not the only risk you should consider while investing, it’s important that you understand the risks associated with any investment. For independent information about investment choices, visit MoneySmart website, which has useful information on products such as term deposits, as well as tips on how to choose a financial adviser.*