The Australian Competition and Consumer Commission (ACCC) has reported that over the last few years, thousands of Australians have been the victim of frauds totalling $113 million.

Below are several key strategies that you can employ to protect your investments against fraud:

1. Don’t speak to cold callers:

Many fraudsters will initiate contact with targets through unsolicited “cold calling” to spruik a special offer or an opportunity, with the promise of further documentation of the ‘opportunity’. If you do wish to engage in conversation, inititally try to attempt to determine the legitimacy of the call. Ask a couple of simple questions to the sales person such as;

  • Where are you calling from?
  • Who owns the company you represent?
  • What is the registered address and financial services licence number of the company?

If the person cannot confidently provide these details, you should immediately hang up.

2. Check out the company yourself:

Before signing up for any investment or financial product or service, check out the company yourself.

Companies offering investment and financial products are all required to have an Australian Financial Services Licence (AFSL) number. All companies with an AFSL are registered with the Australian Securities & Investment Commission (ASIC). There are no exceptions. You should not deal with any investment company that says it doesn’t need to have an AFSL.

3. Don’t reply to any emails.

4. Be suspicious of websites:

The websites that fraudsters refer their victims to often look and feel just as professional as any other legitimate website. They will have links to fake performance graphs and figures on their managed funds to fool you into trusting their investment product. You will generally be given a log-in and password to further the illusion of legitimacy. The website may also provide fake details of the investment company, such as a fabricated AFSL or business address, and before signing up through any website you should verify the identifying information on it using the business search feature on the ASIC website – www.asic.gov.au.

5. Seek professional, face to face advice:

Often fraudulent advisers will attempt to provide all advice to you over the phone or through email/mail in order to reduce the likelihood of them being identified. Before placing any investments, you should ensure that you have met your adviser in person and can trust their advice.

6. Protect your identity:

You should be extremely careful about what information you give out, and to who you provide it to. You should not divulge any personal, banking or credit card details to any person or company until you can be absolutely certain of the legitimacy of the company and their authority to request and hold the information that they have asked for. You should also make any passwords that you have complex.

7. Alert the Authorities:

You should report any company that you believe to be fraudulent to the Australian Securities & Investment Commission (ASIC) on 1300 300 630 or www.moneysmart.com.au or contact your local police.

 

GENERAL ADVICE WARNING © 2012 Harvest Financial Group Pty Ltd. This Newsletter has been prepared for clients of Harvest. This document contains confidential and proprietary information of Harvest Financial Group (‘Harvest’), and is intended for the exclusive use of the recipient to whom it is addressed. The document, and any opinions it contains, may not be modified, sold or otherwise provided, in whole or in part, to any other person or entity without Harvest’s prior written permission. The information in this document is believed to be reliable however, no representations or warranties are made as to the accuracy of the information presented, and no responsibility or liability, including for consequential or incidental damages, can be accepted for any error, omission or inaccuracy in this report or related materials.