Cold -call Investment Fraud is on the rise
Cold-call investment fraud and email fraud is becoming a growing threat. Perpetrated by offshore, organised crime groups, Australians are being cheated out of their hard-earned money. By being investment smart, you can minimise the risk and avoid becoming an easy target.
What's the nature of the threat?
Criminals claiming to be investment brokers have recently been making telephone contact with their victims. They build rapport through regular telephone and email contact and are able to create a perception of legitimacy through:
- professional looking websites
- personal accounts for victims with login access
- regular reports about strong investment returns
- media releases.
People are coaxed into electronically transferring significant amounts of money to overseas bank accounts. As at June 2012, law enforcement had identified more than 2,600 Australians who had been defrauded of $113 million in recent years.
'Many of these investment scams are so professional and believable that it is hard to tell them apart from genuine investment opportunities' says Australian Securities and Investment Commission (ASIC) Chairman Greg Medcraft.
Are you assisting fraudsters without realising it?
The financial services industry has experienced an increasing number of sophisticated attempted frauds involving requests to transfer funds via email. Outlined below is some useful information on this practice and what you should be looking out for.
Protect yourself and your personal data
- Always seek professional advice before making an investment.
- Familiarise yourself with recent scams by visiting ASIC's Money Smart website (www.moneysmart.gov.au).
- Hang up on unsolicited telephone calls offering overseas investments.
- If you see a suspicious email, instant message or webpage asking for information, don't respond.
- Don't ever share your passwords with anyone (even family or friends). Legitimate sites and services will never ask you to reveal your password.
- Don't click on links in emails from people you don't know.
- If you get a message from someone you know and it doesn't 'sound' like them or it has suspicious links attached, delete it immediately and let them know (via another channel) that their email or messaging account may have been compromised.
- Ignore plea's for help - or investment offers - from people you don't know. Even pleas from people you do know should be verbally verified if a request for your money is involved.
- When banking online or using other financial services, type the relevant URL (web address) into the address rather than relying on links (which could redirect you to scam sites).
- Also check that URLs in your address bar look correct. A website that's supporting financial transactions should have a URL that starts with https:// to indicate the site is encrypted and, therefore, safer.
- Report suspected fraud to ASIC via www.moneysmart.gov.au or 1300 300 630, or contact your local police. Any information that can be provided such as a company name, location and contact details will assist with subsequent investigations and enquiries.
What is the Government doing?
The Australian Crime Commission Board has established a multi-agency task force to disrupt and prevent this form of organised fraud and to educate Australians about the threat it represents. The task force is working with key stakeholders in banking, financial advisory and superannuation industries to develop strategies to disrupt and prevent the crime.
The information contained in this newsletter is of a general nature only and does not take into account your particular objectives, financial situation or needs. Accordingly the information should not be used, relied upon or treated as a substitute for specific financial advice. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided. Taurus Financial Services Pty Ltd its directors or staff, nor its employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.
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