ASIC Broker Warnings
If you are looking for investment opportunities, you may come across some websites or entities that claim to offer you high returns, low risks, or access to exclusive markets. However, not all of them are legitimate or licensed to operate in Australia. Some of them may be fraudulent, unlicensed, or impostors of genuine businesses. These are known as investment scams, and they can cause serious financial and non-financial harm to you.
How Can You Tell if an Entity Is a Scam?
ASIC, the Australian Securities and Investments Commission, is the regulator of financial services in Australia. ASIC has recently released a new investor alert list that can help you identify suspicious investment websites or entities. You can use this list to check if an entity you are considering investing in is unlicensed, fraudulent, or impersonating a legitimate business.
The investor alert list includes domestic and international entities that ASIC believes are operating and offering services to Australians without appropriate licences, exemptions, authorisation, or permission. It also includes “impostor” entities, which are entities that impersonate or falsely claim to be associated with a legitimate business (also known as impersonation scams).
You can access the investor alert list on ASIC’s website: https://moneysmart.gov.au/check-and-report-scams/investor-alert-list
What Are Some Warning Signs of a Scam?
Some common warning signs that an entity may be a scam are:
- Unsolicited contact via phone, SMS, or email and offer you an investment opportunity.
- Asking you to click on a link to confirm your personal details or to access their website.
- Pressure to make a quick decision or to act before an opportunity expires.
- A promise of high returns with low or no risks, or access to exclusive or secret markets.
- Upfront fees for goods or services, such as registration, taxes, or insurance.
- Paying for services via cryptocurrency or into a personal bank account.
If you encounter any of these warning signs, you should be very cautious and do not invest with the entity until you verify their legitimacy and licence status.
How Can You Report a Scam?
If you have seen a suspicious website or entity and you think it might be an investment scam, you should report it to ASIC as soon as possible. You can find out how to report an investment scam by following this link:
https://asic.gov.au/about-asic/contact-us/how-to-complain/reporting-a-scam/
If you are unsure of the nature of the scam, you can also report it to Scamwatch, which is run by the Australian Competition and Consumer Commission (ACCC). You can report a scam to Scamwatch by following this link:
https://www.scamwatch.gov.au/report-a-scam
Reporting a scam can help ASIC and other authorities to take action against the scammers and protect other consumers from falling victim to them.
What Can You Do if You Have Been Scammed?
If you have invested money with a scam entity, you should try to stop any further payments or contact with them. You should also contact your bank or financial institution and inform them of the situation. They may be able to help you recover some of your money or prevent further losses.
You should also seek professional advice from a financial counselor, a lawyer, or a community legal center. They can help you understand your options and rights, and assist you with any legal action or dispute resolution.
You can find more information on what to do if you have been scammed on ASIC’s website:
https://moneysmart.gov.au/check-and-report-scams/what-to-do-if-youve-been-scammed
Investment scams are a serious threat to consumers and their financial well-being. By being alert and informed, you can protect yourself from falling prey to them and make better investment decisions.
