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Tips for staying safe online

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Investment Scams

Investment opportunities that seem too good to be true, probably are. If you’re approached via unsolicited emails or calls from an investment company or financial adviser, it’s crucial that you complete some checks before you hand over any personal details. Check if the financial organisation is registered with ASIC on the MoneySmart website. You can also check whether the organisation is on the list of companies you should not deal with.

Many of these scams begin with ads on social media that appear to be endorsed by celebrities or well known and trusted public figures. The person contacting you may pose as a stockbroker, portfolio manager or financial adviser. There will typically be a sense of urgency and the need to ‘act fast’. Common investment scams include investment cold calls, share promotions and tips, real estate and property projects and early access to your super. Before investing, look up the company or platform independently. Check for reviews, complaints or warnings from official sources.

If you’re unsure whether you’ve been targeted with a scam, the best thing to do is to act fast. You can find out more about the latest scams or report a scam via the Scamwatch website.

How to spot an Investment scam

There are a few telling signs of an investment scam, including:

You are contacted out of the blue by an organisation or person you have never heard of and they will try and keep you on the phone as long as possible.
You receive an email offering you financial or investment advice.
The organisation operates from overseas and therefore does not have an Australian Financial Services Licence (AFSL).
You are invited to a free investment property seminar but the next one has a high fee to attend.
You are offered an opportunity that has a high return, for little or no risk.
You are approached by someone posing as a financial adviser who offers to help you access your super early, often through a self managed super fund or for a fee.
You are contacted via social media about an opportunity that appears to be endorsed by a public figure or well known TV show.
You are offered investment bonds, which they claim offer high returns and are protected by the government.

Protecting yourself from investment scams

As with all scams, staying vigilant and cautious is the best way to protect yourself:

Always be suspicious of anything that looks like a ‘get rich quick’ scheme.
Never provide your details or respond to anyone offering unsolicited investment or financial advice.
Never allow yourself to be pressured into any money making financial decisions, especially when faced with a sense of urgency or fear of missing an opportunity. Take the time to research your investment options and whether it aligns with your goals.
Check that the organisation contacting you holds an Australian Financial Services Licence. You can check this on the ASIC Connect Professional Registers. And be sure to also check whether the person who contacted you is an employee of the organisation offering a legitimate investment opportunity, by calling the organisation using the phone number listed on their official website.
Check the credentials of anyone posing as a financial adviser by searching for them on ASIC’s Financial Adviser Register. This will tell you whether they are licensed to provide you with financial advice, their qualifications and experience and whether they are a member of a professional body or whether they have had any disciplinary action against them.
Speak to family or friends and get their thoughts on the investment opportunity that has been offered to you. They may be able to point out some red flags you may have missed or help you do some thorough research.

Remote access scams

You should never be asked to install software that allows anyone to access your computer or any other device remotely. If you are asked to provide remote access to your computer, see this as a big warning sign, it could be a scam.

A scammer posing as an employee of a large organisation such as a bank, telecommunications company or government agency may contact you with an incredibly convincing story as to why they need to remotely access your computer or device.

Most remote access scams start with a phone call and may tell you that either:

Your computer has been sending error messages or has a virus.
There are problems with your internet connection or phone line.
Your internet connection has been hacked.

Once they have scared you, they will request remote access to your computer, so they can investigate what the ‘problem’ is. If you don’t agree to follow their instructions, the scammer can become insistent or abusive. Be especially vigilant if you are asked to reset your password, provide your secure code, update your account or device with new security software, purchase a new modem or provide any personal or bank details.

Protecting yourself from remote access scams

Follow these simple tips to protect yourself from remote access scams:

If any organisation requests that you provide them with remote access to your computer or device, hang up immediately.
Do not share your credit card, personal or log in details with anyone.
Never give your personal details, credit information or online account details in response to an unsolicited phone call, SMS or email.

Phishing

Phishing is a form of scam where criminals will try to trick you into providing your personal information, such as online ID and security passwords. This form of scam can take place over the internet, phone or via SMS.

Phishing over the internet

You may be contacted by email or social media which may lead you to a fake website, this is the most common way that criminals will phish for your information over the internet.
Fake websites can look legitimate but will have a slightly different address and often the website will mimic a recognisable financial institution such as a bank or insurance company. Their aim is that you will unknowingly enter your user security details and therefore provide them with your information. The safest way to access a website, is to go to it directly from your browser and log in from there.

Phishing over the phone

If you receive a phone call you didn’t expect be very wary if they ask you to disclose sensitive information. A legitimate organisation will never ask you to disclose any of your secure codes or passwords over the phone.
If you have reason to suspect the call is not legitimate, ask for their name and call them back via the organisation’s official phone number.
As well as phone calls, you may receive fraudulent voice recorded messages that dial back a number automatically, asking you to provide account information or call a number you don’t recognise. If this occurs, be mindful this might be a scammer tactic, aimed at you to provide information.

Phishing via SMS

Scammers may also try to ‘phish’ for your details by sending an SMS to your mobile (also known as smishing). If you receive an SMS that you didn’t expect, don’t click on any of the links, call the organisation via their official phone number to check whether they sent the SMS.

Identity theft

Identity theft can include everything from someone fraudulently using your credit card or stealing your entire identity to perform activities, such as open a new account, apply for a loan and credit or open an investment policy. The good news is, there are some simple ways you can protect your personal information and identity.

Safely dispose of personal and financial information – shredding your account statements, bills and receipts before you throw them away, will keep your personal information safe. If you don’t have a shredder, be sure to tear up paperwork well.
Keep your letterbox secure – an open letterbox is an open invitation for criminals. Make sure it stays locked and regularly check it for signs of tampering. If you’re planning a long trip away, re-direct your mail to your local post office or arrange for someone you trust to regularly empty your letterbox.
Switch your account statements to electronic format – not only does this help the environment, it eliminates the risk of your hardcopy statement landing in the wrong hands.
Keep your account details up to date – if you are moving to a new house, make it a priority to update your address with all of your financial providers. Always make sure they have your current mobile number and email address so that they can quickly reach you if they suspect any fraudulent activity on your account.
Change of personal information – if you get an SMS or email notification that information on your financial provider’s account has been updated or changed (such as mobile or email address) and you did not action this yourself – call them immediately.

Source: Challenger