Dough! Investment scams costing victims

In 2023, investment scams accounted for more than 60 per cent of those reported to the Australian Competition and Consumer Commission’s Scamwatch, with national losses at around $293 million. In South Australia, more than $10.2 million was lost to scammers in the same year.

“While this amount is alarming, it is likely actual losses are significantly higher because many people don’t report when they’ve been scammed,” Cybercrime’s Senior Constable First Class Casey Morrison said.

“Investment scams involve promises of big payouts, quick money, or guaranteed returns.

“In addition to the traditional way of transferring funds through bank transfer, cryptocurrency is becoming more popular because of the perceived anonymity it offers. Crypto scams often aim to gain private information such as security codes or trick an unsuspecting person into sending cryptocurrency to a compromised digital wallet.”

Across Australia, victims aged 65 and over have suffered the highest losses due to investment scams, with the median amount lost at $30,000.

Red flags

• Fake news stories or ads where celebrities endorse schemes for people to make ‘big money’.
• Emails, websites or ads with testimonials and over-the-top promises of big returns.
• An online friend or partner you’ve never met in-person brings up the topic of investing.
• High pressure tactics designed to rush you to act so you don't 'miss out'.
• You are asked to promote the scheme to friends and family to earn commission.
• The 'adviser' who is helping you claims they don't need an Australian financial services (AFS) license.

Prevention advice:

• Be wary of advertisements found on social media sites offering investment opportunities. Scammers use these platforms to lure potential victims and direct them to fraudulent websites.
• Always be suspicious of any investment opportunities that promise a high return with little or no risk – if it seems too good to be true, it probably is.
• Never allow anyone access to your device to assist with creating accounts. Remote access apps give scammers full access to your phone, your identity, and your newly created cryptocurrency account.
• Do not send copies of identification such as your driver’s licence, passport or Medicare card to people or businesses that you are unfamiliar with.
• Watch out for poor grammar and spelling. A legitimate company will take great care in having a professional look throughout their site.

Real-life example:

Andrew began speaking to a woman named Zoe on the Tinder dating app. After a few weeks of conversation, Zoe suggested that they continue communications on a popular encrypted messaging app. Over the following weeks, Zoe began to speak about investing in the cryptocurrency market and said that she was doing well. She encouraged Andrew to invest and assisted him with setting up an account and provided advice on how to make an investment using an online trading platform. Zoe recommended that Andrew first transfer a small amount, which he did. The following day, Andrew received a small amount of interest back into his cryptocurrency account. Feeling pleased about the instant return, Andrew proceeded to invest nearly $13,000, which included him obtaining a bank loan. When Andrew attempted to withdraw the funds, he was unable to do so and all contact from Zoe has now ceased.

Report

• If you have suffered harm or loss because of a scam, make a report at www.cyber.gov.au/report or attend your local police station.

Support

• Talk to friends and family.
• eSafety Commissioner – www.esafety.gov.au
• Victims of Crime SA – www.voc.sa.gov.au
• Lifeline – 13 11 14 or www.lifeline.org.au

For more information visit www.police.sa.gov.au/scams-week