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Warning Signs: How to Spot and Avoid Investment Scams in Australia
Investment scams can be sophisticated and convincing, but there are warning signs you can watch for—and steps you can take—to protect yourself.
Step 1: Only Deal with Licensed Entities
We strongly advise that you only deal with financial services firms that are licensed by the Australian Securities and Investments Commission (ASIC). Before investing, check the ASIC Professional Registers to ensure the company or individual is authorised to provide financial services in Australia. Legitimate financial institutions are unlikely to contact you out of the blue with unsolicited investment offers.
Step 2: Verify the Identity of the Financial Firm
Ask for the company’s Australian Financial Services (AFS) Licence Number and official contact details. If the details they provide do not match what’s listed on the ASIC Register—or if they claim the register is out of date—this is a red flag. You can contact us at: info@www.aufundregistry.com
Step 3: Be Cautious of Cold Calls and High-Pressure Tactics
Scammers often pretend to represent well-known firms. Make independent checks to confirm you're dealing with the genuine business. Verify contact details using the company’s official website or by calling their publicly listed number. Be especially wary if the approach was unsolicited.
Step 4: Know the Risks of Dealing with Unlicensed Firms
If you buy shares or other financial products from a firm that is not licensed by ASIC, you will not have access to the Australian Financial Complaints Authority (AFCA) for dispute resolution or any investor compensation scheme should things go wrong.
Step 5: Be Aware of Overseas Boiler Rooms
Many boiler room scams originate from overseas locations such as Singapore, Hong Kong, Switzerland, or the United States. Even if the return address appears to be in Australia (e.g., a Sydney PO Box), it may just be a mail-forwarding service linked to an offshore operation. Be wary if you're asked to transfer money to a local bank account on behalf of an overseas-based company.
Step 6: Look Out for Blacklisted Firms and Individuals
Check ASIC’s “Companies You Should Not Deal With” list, which contains names of firms and individuals who have received complaints or warnings. Keep in mind that scammers regularly change names and websites to avoid detection.
Step 7: Review International Warnings
Many international regulators also publish alerts about unauthorised firms operating across borders. If you’re contacted by an overseas entity, check whether they’ve been flagged by financial regulators in their country of origin.
Step 8: Verify Prices and Do Independent Research
If you are considering a share offer, check the current market price through a licensed broker or financial news outlet. Scammers may offer shares far above their real value or misrepresent what’s being sold. Always conduct your own research—review the company’s official website, financial reports, and reputable financial media.
Step 9: Report Suspicious Activity
If you've been contacted or think you've fallen victim to an investment scam, contact the Australia Fund Registry Helpline or report it through our Investment Scam Reporting Form. You should also report the incident to:
ASIC (www.asic.gov.au)
ACORN (Australian Cybercrime Online Reporting Network)
Your local police station
If you’ve already transferred money to an Australian or overseas bank account, contact us immediately at: info@www.aufundregistry.com
Step 10: Learn More About Protecting Yourself
Stay informed. Visit aufundregistry.com for more resources on recognising, avoiding, and reporting investment scams.