Hang up on scams

Overseas scammers have turned to phone calls to catch Aussies unaware, so stay vigilant, writes Anthony Keane

AS the “can you hear me” telephone scam spooks people across the globe, investors are being urged to be extra careful about who they deal with.

A fresh warning by the Australian Securities and Investments Commission says overseas scammers target Australians because ASIC has no power to investigate and prosecute them; leading to a rising number of overseas companies being added to ASIC’s moneysmart.gov.au list of unlicensed firms to avoid.

Laura Higgins, senior executive leader at ASIC’s MoneySmart, said the list currently totalled about 1000, with 10 companies added each month on average.

“This includes businesses that have made unsolicited calls or sent emails about investing, financial advice, credit or loans and don’t hold the current licenses from ASIC,” she said.

“It’s important to be vigilant if you receive an unsolicited call or email offering an investment opportunity as it could be a scam. If you’re offered (an) investment opportunity which sounds too good to be true, there’s a good chance it is.”

Australian Competition and Consumer Commission data shows $83.5 million was reported lost to scams last year, with investment schemes losing $23.6 million – second only to dating and romance scams.

Wealth for Life Financial Planning principal Rex Whitford said his clients had been targeted by a cold-calling property investment firm that quickly went broke, and he personally had been called by a scammer wanting to invest $20 million of bitcoin with him.

“If someone rings to talk about your personal financial circumstances, that should be the first rat you smell,” he said. “Check the ASIC website.” The “can you hear me” phone scam, which has spread toAustralia in recent weeks and aims to entice people to say “yes” so their voice can be recorded to be used fraudulently with voicerecognition services, is another potential trap for investors.

“Hang up, and don’t say another word,” Mr Whitford said. He said investment scammers commonly target people with selfmanaged super funds, often using professionallooking websites. “They might even get a few months of returns, then all of a sudden their money is gone.”

MsHiggins said all investors Photo: BOB BARKER should be wary of unsolicited calls because of the likelihood of scams, and people should never feel pressured into making financial decisions. “It’s important to be vigilant in not engaging with cold calls and protecting your personal information. Never provide your personal, banking or credit card details to unsolicited calls or emails,” she said. “Only invest in products and services you understand.” For more information visit moneysmart.gov.au or scamwatch.gov.au.