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Reduce the risk of investment scams

Be suspicious of anyone offering you easy money. Scammers are skilled at convincing you that the investment is real, the returns are high and the risks are low. There's always a catch.

Published: 27 October 2022
Financial abuseLegal & financialPreventing elder abuseUnderstanding elder abuse
  • national
  • 27 October 2022
  • moneysmart.gov.au

How investment scams work

There are three main types of investment scams:

  • The investment offer is completely fake.

  • The investment exists, but the money you give the scammer doesn't go towards that investment.

  • The scammer says they represent a well-known company – but they're lying.

In any case, the money you 'invest' goes straight into the scammer's bank account and not towards any real investment. It is extremely hard to recover your money if it goes to a scammer based overseas.

Anyone can be scammed and every scam is different. Scams are often very hard to spot and can feel legitimate in the moment. Scammers can use professional-looking websites and apps, and impersonate legitimate companies.

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