Why investment scams are on the rise
Investment scams are one of the fastest-growing and most financially damaging scams in Australia. Each year, Australians lose hundreds of millions of dollars to fake investment opportunities that look legitimate on the surface but are designed to steal your money.
The reality is simple: if an investment sounds too good to be true, it usually is.
What is an investment scam?
An investment scam happens when someone convinces you to invest in a fake or misleading opportunity. Scammers often pose as financial advisers, brokers or even representatives of well-known companies to gain your trust.
They may promise:
- High or guaranteed returns
- Low or no risk
- Exclusive or limited-time opportunities
But in most cases, the money you invest goes straight to the scammer, not into any real investment.
Common investment scams tactics
Building trust
You might be contacted through social media, email, phone, or even dating apps. Some scammers build relationships over weeks or months before introducing an “investment opportunity”.
Creating urgency
You may be told the opportunity is limited or time-sensitive, pressuring you to act quickly before you can properly check it.
Showing fake returns
Scammers often provide access to professional-looking platforms or apps that show your investment “growing”. In some cases, they allow small withdrawals to build trust.
Blocking access to your money
When you try to withdraw larger amounts, you’ll face delays, additional “fees”, or complete silence. Eventually, the scammer disappears.
How to protect yourself
Taking a few simple steps can significantly reduce your risk.
Stop
Pause before acting on any investment opportunity, especially if you feel rushed.
Check
For extra peace of mind, take the time to verify the company and adviser independently, confirm they hold an Australian financial services license and look for reviews or warnings online. You can also check official alert lists like
ScamWatch
to see if the scam has already been reported.
Reject
If something doesn’t feel right, walk away. Do not send money or share personal details.
It’s also a good idea to talk to a trusted friend, family member or licensed financial adviser before making investment decisions.
Support is always available
It can be hard to spot an investment scam, especially when it looks legitimate. Knowing the warning signs can help you stay confident and in control. If you’re ever unsure about an investment opportunity or request involving money, contact us for support.
Visit the Security Hub
Our Security Hub is a go-to destination for staying informed about online threats. It offers practical tips, scam alerts, and easy-to-use tools that help you recognise and respond to risks with confidence.
Trusted support services
Scamwatch & National Anti-Scam Centre
Scamwatch, run by the Australian Competition and Consumer Commission, provides information on how to recognise, avoid, and report scams. It’s part of the broader work of the National Anti-Scam Centre, which brings together government, industry, and community efforts to disrupt scams and protect Australians.
Australian Cyber Security Centre
The ACSC is the Australian Government’s lead agency for cyber security. It provides up-to-date alerts, advice, and resources to help individuals and businesses protect themselves online. It also plays a key role in coordinating national responses to cyber threats.
MoneySmart
MoneySmart, by Australian Securities & Investments Commission, offers free and confidential financial counselling services. If you’ve been financially impacted by a scam, they can help you get back on track.
ReportCyber
Managed by the Australian Government, ReportCyber is the official platform for reporting cybercrime and online incidents. It also offers guidance on what to do if you’ve been affected by a cyber incident.
Helpful resources
Disclaimers
This content is informed by resources from the Australian Government’s Scamwatch website. For more information and resources on protecting yourself from scams, visit www.scamwatch.gov.au. Information is general in the nature and does not take your personal circumstances into account. Regional Australia Bank Ltd ABN 21 087 650 360 AFSL & Australian Credit Licence 241167.
