This article uses a case study to issue a warning about a new scam targeting superannuation holders with offers of gift cards and electronics to extract personal financial details through cold calls and deceptive 'comparison websites'.

In a recent media release, the Australian Securities and Investments Commission (ASIC) warned about a new scam doing the rounds.

Scammers attempt, through cold calls to superannuation savers, to extract personal and super fund details by offering incentives in the form of gift cards, competitions or mobile phones.

Some induce victims to create an account on their ‘comparison website’ to legitimise themselves and their advice.

Being the victim of a financial scam can be both devastating and humiliating. This article uses a case study to tell the story of a woman on the brink of retirement who falls victim to a cryptocurrency scam that wipes out her savings, leading her through a journey of self-blame and recovery.

A year before retirement, Tess’s superannuation plan was on track, and she was imagining her post-work life. With savings of $34,000 at the bank, she was looking to park it somewhere it could earn better interest while rates were rising.

Considering herself reasonably savvy with money, she began investigating her options.

After hearing about someone who’d made a fortune with cryptocurrency, Tess was intrigued and decided to look into it.

Financial scams are on the rise with thousands of people falling victim every year. This article discusses the many different types of scams to be aware of and what to do if you think you have become a victim.

In 2020 Australians reported over 7,000 investment scams to Scamwatch, well up on the 5,000 reported in 2019. Scamwatch recorded investment scam losses of $65.8 million, but add in notifications made to other government agencies and the major banks and reported losses across 2020 soared to $328 million. Due to embarrassment many losses go unreported so we may never know the full extent of the damage.

With a high likelihood that we will all be targeted by scammers at some stage, perhaps repeatedly, how can we identify scams and protect ourselves from losses?

Amazingly older, highly educated men pose the highest risk of being scammed. This article focuses on two ‘popular’ financial scams – investment scams and the promise of early access to super. It explains who they target, how they work and what your readers should do to protect themselves. The statistics show that even with growing public attention, scam losses are increasing at an astonishing rate!

If you are over 50, male, highly educated, financially literate and manage your own super, beware. You’re at a higher risk of being the target (and victim) of organised investment fraud.

This isn’t necessarily because your demographic is particularly gullible. Rather, it’s because you’re more likely to control higher levels of wealth, perhaps as the trustee of a self-managed super fund (SMSF); you’re accustomed to making financial decisions; and you’re actively looking for attractive investment opportunities. What scammer wouldn’t want to target you?

Scams take many forms but when it comes to superannuation, two stand out:
1.    fraudulent investment schemes, and
2.    schemes offering early access to superannuation.

Either way, the result can be a major financial loss and dreams destroyed.

This article lists various types of scams, describes the characteristics of investment scams and how to avoid becoming a victim. This topic should be covered at least once every year as scammers are getting smarter and Australians are consistently losing millions of dollars.

We’ve all seen media reports about ordinary Australians losing their entire savings after responding to a phone, email or mail offer that was impossible to resist. While some people may be naïve, scammers are also getting smarter.

Financial stings have become a serious threat to Australian consumers and businesses. According to the ACCC’s Scamwatch website, there were ........... reports of scam in 2017, for a total loss of more than $.... million!