Your retirement nest egg is a prime target for investment scams. The investment attracts a significant amount of attention as funds are placed into it every day by Australians. These scammers may pose as your superannuation fund, financial advisors or even as the ATO.
Some of the most recent scams involving super that has received media attention include:
- Cryptocurrency trading scam (August 2021); and
- Self Managed Super Fund (SMSF) phishing scam (May 2021).
Cryptocurrency Investment Scams
These scams usually involve offers on highly profitable trading systems based on individuals expertise or through algorithms they have developed. Scammers may promise you high returns with low risks to attract your attention. Following this, you may receive a ringing (but fake) celebrity endorsement that attempts to enhance the legitimacy of the scam. The scammers then request funds transfer into a trading account via a crypto wallet or bank account. Scammers will then provide you initially with small returns sourced from other victims’ initial deposits.
They will then claim problems with making withdrawals and cut off contact.
Self Managed Super Fund (SMSF) Investment Scams
Suppose you are a target of a scam such as this. In that case, the chances are that you have been cold-called or emailed by random individuals/organisations who are posing as financial advisers or representatives of an SMSF.
Scammers may promise you high returns if you move all or some of your super to an SMSF and use email, web and company information that looks real to capitalise on their legitimacy. They will also register actual business and bank accounts in your name to appear genuine and request for personal data to be provided so that they can complete the transfer (such as identity documents). The scammer will then transfer your super out of your account and into theirs once they have access.
Therefore, superannuation and its protection are of paramount concern to those who are looking at living off of it for the future.
So what are some of how you can protect yourself and your superannuation from potential scams?
Acquaint yourself with the formula for many of these scams. Often, scammers’ approaches can be sloppy, with emails that contain obvious errors or sophisticated with legitimate business names, spelling, and official-looking addresses. They’ll often claim:
- They’re from your super fund, bank or a government agency.
- Ask for personal information.
- Offer help with withdrawing your super. This might be as one lump sum to an account that doesn’t belong to you or as a withdrawal to an SMSF
You can take some straightforward steps to protect yourself from super scams.
Know The Rules Around Superannuation
- Becoming familiar with the rules surrounding superannuation will alert you against scams that make false claims, e.g. offering early access to your super
- Keep up to date with the relevant authorities so that you don’t put your personal information into the wrong websites – always check that relevant institutions have verified their authenticity!
Keep Track Of Your Balance And Account Details
- Check what your super balance is regularly – if you notice something that doesn’t quite look right, then immediately get into contact with your super fund and ask them about what could have happened.
- Every once in a while, check that your super fund has the correct postal address, email address, and mobile number – this will help them get in touch with you if they spot any suspicious activity.
Reduce And Restrict Attempts At Identity Theft
- Taking steps to stop identity theft will also help protect your super
- Shred important documents, change passwords every few months, etc.
Follow us on our social media pages on Facebook, Instagram, and Twitter to stay up to date with current scams. If you have any other questions, then please feel free to contact us.
