ASIC chief’s warning about pandemic scammers

AUSTRALIA’S financial institutions are well capitalised, well regulated and capable of withstanding the shocks and other problems caused by the COVID-19 pandemic.

However, there is still a lot of nervousness in the community, and some unscrupulous operators are trying to take advantage of the situation.

Some scammers are offering to help people withdraw early superannuation for a fee. Don’t fall into this trap: there is no need to pay anything! It is a free application process, done through the ATO’S website.

Other scammers are spruiking high-return investment opportunities. Remember: If it sounds too good to be true, it probably is.

ASIC’S Moneysmart.gov.au website has information about scams and making financial decisions, and can help you find a financial counsellor.

If you have to make big decisions in the coming months, take the time to get proper information and consider all of your options.

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Your bank, insurance company or super fund may be able to assist and there are financial counsellors and licenced financial advisers you can speak to. Get in touch with the National Debt Helpline on 1800 007 007 if you’re struggling with debt. Find out about Government support programs for individuals and small businesses.

If you’re having problems paying your mortgage, talk to your lender ASAP.

Many banks are offering six-month repayment deferrals on mortgages but be aware that you will accrue interest payments.

Anthony Keane

If your bank is unhelpful, you can contact their internal dispute resolution team. If you’re still unsatisfied, contact the Australian Financial Complaints Authority to seek free, independent dispute resolution.

If you decide to withdraw

anthony.keane@news.com.au |

Sophie Elsworth superannuation, submit your application via the ATO’S website and they will assess your application for free.

Withdrawing super to invest elsewhere is not what the scheme is designed for and is not advisable – do not let anyone tell you different.

If you have a life insurance policy, be aware of what you are and are not covered for – ask your provider if you’re unsure.

If you are considering changing your life insurance provider, make sure you won’t lose coverage and make especially sure your new policy covers you in the event you’re impacted by COVID-19.

If you are struggling to pay bills or local council rates, do not seek out a payday loan. Instead, talk to your service provider or council. You might be eligible for rebates and vouchers, or you may be able to arrange a payment plan that works for you.

Ultimately, you should plan ahead, think your financial decisions through, and seek decent, trustworthy information and advice.

COVID-19 will end, but the impact of a poor or hasty financial decision may not. James Shipton is chair of the Australian Securities and Investments Commission

JAMES SHIPTON

If you are struggling to pay bills or local council rates, do not seek out a payday loan ... You might be eligible for rebates and vouchers

sophie.elsworth@news.com.au