What is an investment scam?
Australians lose more money to investment scams than any other type of scam. In 2024, more than $945 million fell into the hands of scammers^.
Investment scams work by promising guaranteed, quick and easy returns. These money-making opportunities could be presented as shares, term deposits, bonds, foreign currency trading, cryptocurrencies, or even real estate.
The scammers often pose as bankers, stockbrokers, or finance professionals. They will talk the talk, appearing knowledgeable, experienced, and helpful on investment matters and may even provide official-looking prospectus documents or websites.
Once you’ve invested, the scammers create fake data to make you believe that your investment is doing well. They may initially allow you to make small withdrawals as a way to gain your trust but when you try to withdraw all your funds, they disappear or come up with reasons not to pay you. At this point, it’s very unlikely you will recover your money.
Scammers can be very convincing. Be suspicious of anyone offering you a ‘risk-free’ investment with high returns. There is always a catch.
Think you've been scammed?
Contact us on 13 25 85 or visit your local branch immediately.
Signs to look out for.
Fake celebrity endorsements
Returns that are too good to be true
Online contact
High pressure tactics
Common types of investment scams.
Crypto assets are often described as ‘coins’, ‘tokens’, or cryptocurrencies. They are a type of digital currency that allows people to make payments directly to each other through an online system. The most well-known crypto-assets are Bitcoin and Ether.
Crypto-assets are difficult to track and can be sent overseas quickly – making them the perfect currency for scammers.
There are three main types of crypto scams:
- investing in a fake crypto exchange, website or app
- using crypto to pay scammers
- fake crypto products or jobs trading crypto
If you lose money to a crypto scam, it’s very unlikely you will get it back.
Learn more about crypto scams
A scammer pretends to be someone who is interested in a romantic relationship or friendship with you in order to gain your trust.
Once you’ve been talking for a while, the scammer encourages you to pursue an investment opportunity that seems too good to be true or they offer to show you how to make 'easy money'.
Learn more about romance scams
Scammers use the likeness of a well-known celebrity or business leader in social media ads or fake news stories to grab your attention and encourage you to ‘invest’.
The images and videos can look very realistic as the scammers often use artificial intelligence (AI) to create 'deepfakes' of the person.
Scammers pose as banks or financial firms offering ‘safe’ and ‘low-risk’ investment products, like government bonds, with attractive returns.
They can be very convincing, using fake documents and websites to appear legitimate. They may also create fake customer testimonials raving about how easy and safe the process was, resulting in huge returns.
Learn more about bond investment scams
An initial public offering (IPO) is when a company sells its shares to the public for the very first time. Scammers impersonate banks, brokers, or company representatives and offer a ‘once-in-a-lifetime' opportunity to buy into the business. These scams often mimic real IPOs that are happening in the marketplace.
Scammers trick you into transferring your retirement savings into a fake super fund or self-managed super fund (SMSF) account, often under the disguise of early access or higher returns. They may pose as a financial advisor or an accountant to make you think you’re dealing with an expert.
Learn more about the official rules for withdrawing and accessing your super on the Australia Tax Office website.
Protecting yourself against investment scams.
- Be wary of unexpected contact. Always independently verify who you are dealing with, especially if they are contacting you out of the blue. For detailed steps on how to do this, visit check before you invest
- Check the ASIC investor alert list. This is a list of suspicious companies, businesses, and websites that cannot be trusted. Go to the list
- Discuss with someone you trust. If you’re thinking of making a large deposit, investment, or money transfer, talk it through with a finance professional or even your bank teller. They may be able to spot something you’ve missed. Find a branch
How to spot a deepfake.
A deepfake is a digitally manipulated photo, video, or audio recording that appears to be a real person, but is actually a fabrication that has been created using artificial intelligence (AI).
Scammers use deepfakes to impersonate trusted figures or celebrities, making them do or say things that they never actually did. They can be very realistic and difficult to detect.
Some signs of a deepfake video are:
- the person speaks with unusual pauses, odd pitches, or different accents
- the movements of their mouth are out of sync with their speech
- they may not blink naturally
- the video is low resolution
"I lost $50,000 in fake online trading"
Investment scams can happen to anyone, no matter your education or background. In this real-life story, a convincing scammer tricks someone into using their fake cryptocurrency and forex trading platform.
Reporting an investment scam.
- If you believe your bank account or the bank account of a loved one has been compromised, contact Beyond Bank on 13 25 85 or visit your local branch
- If you or someone you know has incurred financial loss to an investment scam, report the scam to the Australian Government’s cybercrime website at cyber.gov.au/report
- Help disrupt fraudsters and stop future scams by reporting any attempted scam or suspicious activity to ScamWatch
Visit the security hub.
When it comes to protection against scams and fraud, knowledge is power. We have a range of free resources and insights available to help you identify and avoid cybercriminals, keeping you and your community safe. Go to security hub
Common scams and fraud
Learn about the different types of scams and fraud, and what to do if it comes your way.
How to spot a scam
Latest scam and security alerts
Stay aware of the latest scams and fraud targeting Beyond Bank customers.
Stay informed
Account safety tips
Things you can do to make it harder for scammers to target you and your loved ones.
Account security tipsRemember - Stop, Check, Protect.
Three simple steps to keep us all safe from scams.
-
Stop.
If a call, email, or text feels wrong – stop and take a breath. A genuine organisation wouldn’t pressure you to act immediately. If you’re not sure, say ‘no’, hang up, or delete. -
Check.
Do you know who you are talking to? Verify the details first and only contact organisations using contact information that you find yourself from their official website or app. -
Protect.
Act quickly and contact your bank if you notice unusual activity or if a scammer gets your money or information. Report it to Scamwatch and help keep others safe.